DICK'S Sporting Goods Reports Second Quarter Results

Sample article from our Retail & Omnichannel

August 23, 2023 (press release) –

 

– Delivers 3.6% Net Sales Growth –

– Delivers Double-Digit EBT Margin of 10.1% –

  • Delivered 1.8% growth in second quarter comparable store sales, driven by a 2.8% increase in transactions and continued market share gains
     
  • Opened seven new DICK'S House of Sport locations during the second quarter
      
  • Reaffirms 2023 comparable store sales outlook in the range of flat to positive 2.0%
      
  • Reported earnings per diluted share of $2.82 compared to $3.25, or $3.68 on a non-GAAP basis, during the prior year quarter
      
  • Revises full year 2023 earnings per diluted share outlook to reflect second quarter results and gross margin expectations for the second half of the year
     
  • Announces business optimization to better align talent, organizational design and spending to support growth opportunities and streamline cost structure

"We are extremely excited about the future of our business. Our newest DICK'S concepts, DICK'S House of Sport and our next generation 50,000 square foot DICK'S store, are yielding powerful results. We haven't seen growth opportunities like these since we went public in the early 2000s." 

Ed Stack, Executive Chairman
 

"We are pleased with our strong sales performance for the second quarter led by robust transaction growth and continued market share gains. Within the quarter, sales accelerated significantly in July, and we remain confident in delivering positive comp sales for 2023. While we posted another double-digit EBT margin, our Q2 profitability was short of our expectations due in large part to the impact of elevated inventory shrink, an increasingly serious issue impacting many retailers. Despite moderating our 2023 EPS outlook, the enthusiasm we have for our business and the confidence we have in our long-term growth opportunities have never been stronger."

Lauren Hobart, President and Chief Executive Officer
 

PITTSBURGH, Aug. 22, 2023 /PRNewswire/ -- DICK'S Sporting Goods, Inc. (NYSE: DKS), the largest U.S. based full-line omni-channel sporting goods retailer, today reported sales and earnings results for the second quarter ended July 29, 2023.

The newest DICK’S House of Sport opened in Johnson City, NY, a short distance from Binghamton, NY, where DICK’S Sporting Goods was founded 75 years ago.

 

Second Quarter Operating Results

(dollars in millions, except per share data)

13 Weeks Ended

Change (1)

 

July 29, 2023

July 30, 2022

Net sales

$              3,224

$              3,112

$         111

3.6 %

 

Comparable store sales

1.8 %

(5.1) %

   

Income before income taxes (% of net sales) (2)

10.1 %

13.7 %

(362) bps

 

Net income

$                 244

$                 319

$          (74)

(23) %

 

Earnings per diluted share

$                2.82

$                3.25

$       (0.43)

(13) %

 

Non-GAAP earnings per diluted share (3)

$                2.82

$                3.68

$       (0.86)

(23) %

 

 

Year-to-Date Operating Results

(dollars in millions, except per share data)

26 Weeks Ended

Change (1)

 

July 29, 2023

July 30, 2022

Net sales

$               6,066

$                5,813

$        253

4.4 %

 

Comparable store sales

2.6 %

(6.6) %

   

Income before income taxes (% of net sales) (2)

10.8 %

13.1 %

(228) bps

 

Net income

$                  549

$                  579

$         (30)

(5) %

 

Earnings per diluted share

$                 6.23

$                 5.70

$       0.53

9 %

 

Non-GAAP earnings per diluted share (3)

$                 6.23

$                 6.50

$      (0.27)

(4) %

 
                     
                     

Balance Sheet

(in millions)

As of

July 29, 2023

As of

July 30, 2022

$

Change (1)

% Change (1)

Cash and cash equivalents

$                1,902

$                1,896

$             6

— %

Inventories, net

$                2,851

$                2,996

$        (145)

(5) %

Total debt (4)

$                1,483

$                1,850

$        (368)

(20) %

Capital Allocation

(in millions)

26 Weeks Ended

$

Change (1)

% Change (1)

July 29, 2023

July 30, 2022

Share repurchases (5)

$                 260

$                 361

$         (101)

(28) %

Dividends paid (6)

$                 189

$                   83

$          106

128 %

Gross capital expenditures

$                 249

$                 168

$            81

48 %

Net capital expenditures (3)

$                 218

$                 138

$            79

57 %

 Principal paid in connection with exchange of Convertible
     Senior Notes  (7)

$                   —

$                 200

$         (200)

 

Notes

1. 

Column may not recalculate due to rounding.

   

2. 

Also referred to by management as earnings before income taxes margin ("EBT margin").

   

3. 

In the fiscal 2023 period, there were no non-GAAP adjustments to reported earnings per diluted share. For additional information for fiscal 2022, see GAAP to non-GAAP reconciliations included in a table later in the release under the heading "GAAP to Non-GAAP Reconciliations."

   

4. 

Fiscal 2022 included debt with a carrying value of $368 million related to the Company's Convertible Senior Notes, which were fully retired as of April 18, 2023. The Company had no outstanding borrowings under its revolving credit facility in 2023 and 2022.

   

5. 

During the 26 weeks ended July 29, 2023, the Company repurchased 2.0 million shares of its common stock at an average price of $131.00 per share, for a total cost of $260.4 million under its share repurchase program. The Company has $1.2 billion remaining under its authorization as of July 29, 2023.

   

6.

In the fiscal 2023 and fiscal 2022 periods, the Company declared and paid quarterly dividends of $1.00 per share and $0.4875 per share, respectively.

   

7.

During the first quarter of 2023, the Company retired the remaining $59.1 million of aggregate principal amount outstanding of the Convertible Senior Notes and related bond hedge and warrant transactions for 1.7 million shares of the Company's common stock. Refer to the Company's Form 8-K filed with the SEC on April 24, 2023 for additional information. During the 26 weeks ended July 30, 2022, the Company exchanged $200 million aggregate principal amount of Convertible Senior Notes and unwound the corresponding portion of the convertible bond hedge and warrants for $200 million of cash and 3.5 million shares of the Company's common stock. 

Quarterly Dividend

On August 21, 2023, the Company's Board of Directors authorized and declared a quarterly dividend in the amount of $1.00 per share on the Company's common stock and Class B common stock. The dividend is payable in cash on September 29, 2023 to stockholders of record at the close of business on September 15, 2023.

Business Optimization

We are conducting a business optimization of our organization to better align our talent, organizational design and spending in support of our most critical strategies while also streamlining our overall cost structure.  As part of our review, we eliminated certain positions primarily at our customer support center on August 21, 2023 for which we expect to incur approximately $20 million of severance expense in the third quarter of 2023.  Related cost savings are expected to be largely offset by strategic talent investments over the next twelve months.

While the Company has not committed to specific additional actions at this time, it currently expects the business optimization to be completed during fiscal 2023 and may result in additional one-time charges of $25 million to $50 million.

Full Year 2023 Outlook (53 week year)

The Company's Full Year Outlook for 2023 is presented below and does not include any possible future charges from our business optimization that the Company has not committed to:

Metric

2023 Outlook

Earnings per diluted share

●  $11.33 to $12.13

○  Includes approximately $0.20 per diluted share for the 53rd week

○  Based on approximately 87 million diluted shares outstanding

○  Based on an effective tax rate of approximately 21%

●  $11.50 to $12.30 on a non-GAAP basis, which eliminates the impact of
    severance expected to be incurred as part of our business optimization

Comparable store sales

●  Flat to positive 2.0% on a 52-week basis

Capital expenditures

●  $670 to 720 million on a gross basis

●  $550 to 600 million on a net basis

Store Count and Square Footage

The following tables summarize store activity for the periods indicated:

 

26 Weeks Ended July 29, 2023

26 Weeks Ended July 30, 2022

DICK'S
Sporting
Goods

 

Specialty
Concept Stores
(1)

Total (2)

DICK'S
Sporting
Goods

Specialty
Concept Stores
(1)

Total (2)

Beginning stores

728

 

125

853

730

131

861

Q1 New stores

 

1

1

Q2 New stores

 

1

1

1

1

2

Stores acquired (3)

 

12

12

Closed stores

3

 

3

6

1

3

4

Ending stores

725

(4)

135

860

730

130

860

Relocated stores

10

 

1

11

3

1

4

 Square Footage:

 (in millions)

DICK'S Sporting Goods
(1)

Specialty Concept
Stores (2)

Total (3) (6)

Q1 2022

38.7

3.6

42.3

Q2 2022

38.8

3.6

42.4

Q3 2022

38.8

3.9

42.7

Q4 2022

39.2

3.4

42.6

Q1 2023 (5)

39.2

3.4

42.6

Q2 2023 (5)

39.0

3.4

42.4

   

(1)

 Includes our Golf Galaxy, Public Lands, Going Going Gone! and other specialty concept stores. As of July 29, 2023, we operated 97 Golf Galaxy stores, 7 Public Lands stores, 16 Going Going Gone! stores, and other specialty concept stores. In some markets, we operate DICK'S Sporting Goods stores adjacent to our specialty concept stores on the same property with a pass-through for our athletes. We refer to this format as a "combo store" and include combo store openings within both the DICK'S Sporting Goods and specialty concept store reconciliations, as applicable. As of July 29, 2023, the Company operated 16 combo stores.

   

(2)

Excludes Warehouse Sale store locations that are temporary in nature, which the Company operated 38 and 19 as of July 29, 2023 and July 30, 2022, respectively.

   

(3)

Represents Moosejaw store locations acquired by the Company during the first quarter of fiscal 2023, which average approximately 4,000 square feet per store.

   

(4)

As of July 29, 2023, includes ten DICK'S House of Sport stores, including seven new openings during the second quarter of fiscal 2023, which were converted from prior combo store locations.

   

(5)

Includes square footage from 3 and 13 Field & Stream store closures as of July 29, 2023 and April 29, 2023, respectively, as we plan in the near-term to convert them into DICK'S House of Sport stores, expanded DICK'S Sporting Goods stores, or other specialty concept stores.

   

(6)

Column may not add due to rounding.

Non-GAAP Financial Measures

In addition to reporting the Company's financial results in accordance with generally accepted accounting principles ("GAAP"), the Company reports certain financial results that differ from what is reported under GAAP. These non-GAAP financial measures include non-GAAP earnings per diluted share, non-GAAP diluted shares outstanding, and net capital expenditures, which management believes provides investors with useful supplemental information to evaluate the Company's ongoing operations and to compare with past and future periods. Furthermore, management believes that adjustments related to the Convertible Senior Notes and convertible bond hedge provided a more complete view of the economics of the instruments upon conversion. Management also uses these non-GAAP measures internally for forecasting, budgeting, and measuring its operating performance. These measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies. A reconciliation of the Company's non-GAAP measures to the most directly comparable GAAP financial measures are provided below and on the Company's website at investors.DICKS.com.

Forward-Looking Statements Involving Known and Unknown Risks and Uncertainties 

This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified as those that may predict, forecast, indicate or imply future results or performance and by forward-looking words such as "believe", "anticipate", "expect", "estimate", "predict", "intend", "plan", "project", "goal", "will", "will be", "will continue", "will result", "could", "may", "might" or any variations of such words or other words with similar meanings. These statements are subject to risks and uncertainties and change based on various important factors, many of which may be beyond the Company's control. The Company's future performance and actual results may differ materially from those expressed or implied in such forward-looking statements. Forward-looking statements should not be relied upon by investors as a prediction of actual results. Forward-looking statements include statements regarding, among other things, the Company's future performance and growth opportunities, including our 2023 outlook for earnings, sales, and capital expenditures; the impact of our business optimization initiatives and the time frame in which we expect to implement our business optimization; share repurchases and dividends.

Factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements include, but are not limited to: macroeconomic conditions, including inflationary pressures, the expiration of student loan payment deferments, rising interest rates, and disruption of supply chains, whether due to COVID-19, the conflict in Ukraine or otherwise, and the effectiveness of measures to mitigate such impact on our business; changes in consumer discretionary spending; changes in consumer demand or shopping patterns and the ability to identify new trends and have the right trending products in stores and online; changes in the competitive market and competition amongst retailers, including competition for talent and the level of competitive promotional activity; investments in omni-channel growth or other business transformation initiatives not producing the anticipated benefits within the expected time-frame or at all; additional unexpected costs and charges related to our business optimization, failure to achieve the anticipated cost-savings from our business optimization, and a disruption of the business optimization due to changes in the macroeconomic conditions or other risk factors described herein; organized retail crime and our ability to effectively manage inventory shrink; risks relating to vertical brands and new retail concepts; the size of strategic investments and the timing and success of those investments; inventory turnover and supply chain disruptions; weather-related disruptions and seasonality of the Company's business; changes in existing tax, labor, foreign trade and other laws and regulations, including those imposing new taxes, surcharges, and tariffs, and compliance with such laws and regulations; increasing labor and wage costs; limitations on the availability of attractive retail store sites; unauthorized disclosure of sensitive or confidential customer information; website downtime, disruptions or other problems with the eCommerce platform, including interruptions, delays or downtime caused by high volumes of users or transactions, deficiencies in design or implementation, or platform enhancements; disruptions or other problems with information systems; increasing direct competition from vendors (including shipping directly or through broadened distribution channels) and increasing product costs due to various reasons, including foreign trade issues, currency exchange rate fluctuations, and increasing prices for raw materials due to inflation; changes to the corporate tax rates or an imposition of excise tax with respect to share repurchase activity; risks associated with brick and mortar retail store model, including the ability to optimize our store lease portfolio and our distribution and fulfillment network; litigation risks and our ability to protect our trademarks and other intellectual property; our ability to hire and retain quality teammates, including store managers and sales associates; negative reactions from customers, vendors and shareholders regarding Company policy changes and advocacy efforts related to social and political issues; the loss of key personnel; risks related to our indebtedness; and the issuance of dividends.

For additional information on these and other factors that could affect the Company's actual results, see the risk factors set forth in the Company's filings with the Securities and Exchange Commission ("SEC"), including the most recent Annual Report filed with the SEC on March 23, 2023. The Company disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation. Forward-looking statements included in this release are made as of the date of this release.

Conference Call Info 

The Company will host a conference call today at 10:00 a.m. Eastern Time to discuss the second quarter results. Investors will have the opportunity to listen to the earnings conference call over the internet through the Company's website located at investors.DICKS.com. To listen to the live call, please go to the website at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live webcast, it will be archived on the Company's website for approximately twelve months.

About DICK'S Sporting Goods, Inc.

DICK'S Sporting Goods (NYSE: DKS) creates confidence and excitement by inspiring, supporting and personally equipping all athletes to achieve their dreams. Founded in 1948 and headquartered in Pittsburgh, the leading omnichannel retailer serves athletes and outdoor enthusiasts in more than 850 DICK'S Sporting Goods, Golf Galaxy, Public Lands, Moosejaw, Going Going Gone! and Warehouse Sale stores, online, and through the DICK'S mobile app. DICK'S also owns and operates DICK'S House of Sport and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile platform for live streaming, scheduling, communications and scorekeeping.

Driven by its belief that sports have the power to change lives, DICK'S has been a longtime champion for youth sports and, together with its Foundation, has donated millions of dollars to support under-resourced teams and athletes through the Sports Matter program and other community-based initiatives. Additional information about DICK'S business, corporate giving, sustainability efforts and employment opportunities can be found on dicks.cominvestors.dicks.comsportsmatter.orgdickssportinggoods.jobs and on Facebook, Twitter and Instagram.

Contacts:
Investor Relations:
Nate Gilch, Senior Director of Investor Relations
DICK'S Sporting Goods, Inc.
investors@dcsg.com 
(724) 273-3400

Media Relations:
(724) 273-5552 or press@dcsg.com

Category: Earnings

 

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)

 
   

13 Weeks Ended

   

July 29,
2023

 

% of

Sales (1)

 

July 30,
2022

 

% of

Sales

                 

Net sales

 

$         3,223,643

 

100.00 %

 

$           3,112,419

 

100.00 %

Cost of goods sold, including occupancy and
   distribution costs

 

2,114,167

 

65.58

 

1,991,037

 

63.97

                 

GROSS PROFIT

 

1,109,476

 

34.42

 

1,121,382

 

36.03

                 

Selling, general and administrative expenses

 

775,590

 

24.06

 

657,368

 

21.12

Pre-opening expenses

 

22,127

 

0.69

 

3,836

 

0.12

                 

INCOME FROM OPERATIONS

 

311,759

 

9.67

 

460,178

 

14.79

                 

Interest expense

 

14,384

 

0.45

 

25,494

 

0.82

Other (income) expense

 

(28,499)

 

(0.88)

 

7,363

 

0.24

                 

INCOME BEFORE INCOME TAXES

 

325,874

 

10.11

 

427,321

 

13.73

                 

Provision for income taxes

 

81,543

 

2.53

 

108,819

 

3.50

                 

NET INCOME

 

$             244,331

 

7.58 %

 

$              318,502

 

10.23 %

                 

EARNINGS PER COMMON SHARE:

               

Basic

 

$                   2.90

     

$                    4.21

   

Diluted

 

$                   2.82

     

$                    3.25

   
                 

NUMERATOR USED TO COMPUTE EARNINGS PER
   COMMON SHARE:

               

Basic

 

$             244,331

     

$              318,502

   

Diluted

 

$             244,331

     

$              326,494

   
                 

WEIGHTED AVERAGE COMMON SHARES
   OUTSTANDING:

               

Basic

 

84,142

     

75,610

   

Diluted

 

86,783

     

100,389

   
                 

(1) Column does not add due to rounding

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)

 
   

26 Weeks Ended

   

July 29,
2023

 

% of

Sales

 

July 30,
2022

 

% of

Sales

 
                   

Net sales

 

$          6,065,823

 

100.0 %

 

$           5,812,624

 

100.0 %

 

Cost of goods sold, including occupancy and
   distribution costs

 

3,927,731

 

64.75

 

3,706,528

 

63.77

 
                   

GROSS PROFIT

 

2,138,092

 

35.25

 

2,106,096

 

36.23

 
                   

Selling, general and administrative expenses

 

1,469,494

 

24.23

 

1,272,661

 

21.89

 

Pre-opening expenses

 

31,216

 

0.51

 

6,736

 

0.12

 
                   

INCOME FROM OPERATIONS

 

637,382

 

10.51

 

826,699

 

14.22

 
                   

Interest expense

 

29,427

 

0.49

 

51,136

 

0.88

 

Other (income) expense

 

(46,206)

 

(0.76)

 

16,385

 

0.28

 
                   

INCOME BEFORE INCOME TAXES

 

654,161

 

10.78

 

759,178

 

13.06

 
                   

Provision for income taxes

 

105,181

 

1.73

 

180,117

 

3.10

 
                   

NET INCOME

 

$               548,980

 

9.05 %

 

$               579,061

 

9.96 %

 
                   

EARNINGS PER COMMON SHARE:

                 

Basic

 

$                     6.57

     

$                     7.63

     

Diluted

 

$                     6.23

     

$                     5.70

     
                   

NUMERATOR USED TO COMPUTE EARNINGS PER
   COMMON SHARE:

                 

Basic

 

$               548,980

     

$               579,061

     

Diluted

 

$               549,317

     

$               595,262

     
                   

WEIGHTED AVERAGE COMMON SHARES
   OUTSTANDING:

                 

Basic

 

83,607

     

75,895

     

Diluted

 

88,224

     

104,509

     
                   
                   

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - UNAUDITED

(In thousands)

 
   

July 29,
2023

 

July 30,
2022

 

January 28,
2023

ASSETS

           

CURRENT ASSETS:

           

Cash and cash equivalents

 

$             1,901,903

 

$             1,895,521

 

$             1,924,386

Accounts receivable, net

 

139,842

 

83,151

 

71,286

Income taxes receivable

 

13,795

 

1,277

 

8,187

Inventories, net

 

2,851,366

 

2,995,963

 

2,830,917

Prepaid expenses and other current assets

 

115,138

 

100,761

 

128,410

Total current assets

 

5,022,044

 

5,076,673

 

4,963,186

             

Property and equipment, net

 

1,520,678

 

1,321,737

 

1,312,988

Operating lease assets

 

2,269,101

 

2,071,084

 

2,138,366

Intangible assets, net

 

62,993

 

85,553

 

60,364

Goodwill

 

250,503

 

245,857

 

245,857

Deferred income taxes

 

24,278

 

55,873

 

41,189

Other assets

 

207,767

 

208,498

 

230,246

TOTAL ASSETS

 

$            9,357,364

 

$            9,065,275

 

$             8,992,196

             

LIABILITIES AND STOCKHOLDERS' EQUITY

           

CURRENT LIABILITIES:

           

Accounts payable

 

$             1,320,662

 

$             1,489,321

 

$            1,206,066

Accrued expenses

 

597,740

 

503,759

 

508,573

Operating lease liabilities

 

499,189

 

482,195

 

546,755

Income taxes payable

 

52,699

 

12,673

 

29,624

Deferred revenue and other liabilities

 

305,389

 

294,003

 

350,428

Total current liabilities

 

2,775,679

 

2,781,951

 

2,641,446

LONG-TERM LIABILITIES:

           

Revolving credit borrowings

 

 

 

 Senior Notes

 

1,482,794

 

1,481,886

 

1,482,336

 Convertible Senior Notes

 

 

368,478

 

58,271

Long-term operating lease liabilities

 

2,276,037

 

2,096,410

 

2,117,773

Other long-term liabilities

 

178,493

 

163,041

 

167,747

Total long-term liabilities

 

3,937,324

 

4,109,815

 

3,826,127

COMMITMENTS AND CONTINGENCIES

           

STOCKHOLDERS' EQUITY:

           

Common stock

 

602

 

522

 

585

Class B common stock

 

236

 

236

 

236

Additional paid-in capital

 

1,419,628

 

1,384,949

 

1,416,847

Retained earnings

 

5,255,787

 

4,493,516

 

4,878,404

Accumulated other comprehensive loss

 

(277)

 

(85)

 

(252)

Treasury stock, at cost

 

(4,031,615)

 

(3,705,629)

 

(3,771,197)

Total stockholders' equity

 

2,644,361

 

2,173,509

 

2,524,623

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$            9,357,364

 

$            9,065,275

 

$             8,992,196

             

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(In thousands)

 
   

26 Weeks Ended

   

July 29,
2023

 

July 30,
2022

CASH FLOWS FROM OPERATING ACTIVITIES:

       

Net income

 

$           548,980

 

$            579,061

Adjustments to reconcile net income to net cash provided by operating
activities:

       

Depreciation and amortization

 

168,900

 

164,269

Amortization of deferred financing fees and debt discount

 

1,210

 

2,601

Deferred income taxes

 

16,911

 

8,416

Stock-based compensation

 

28,006

 

26,694

Other, net

 

(1,464)

 

6,852

Changes in assets and liabilities:

       

Accounts receivable

 

(30,311)

 

(28,971)

Inventories

 

16,254

 

(698,354)

Prepaid expenses and other assets

 

(10,088)

 

(9,430)

Accounts payable

 

14,404

 

189,082

Accrued expenses

 

14,004

 

(90,127)

Income taxes payable / receivable

 

17,671

 

877

Construction allowances provided by landlords

 

30,995

 

29,273

Deferred revenue and other liabilities

 

(35,648)

 

(35,280)

Operating lease assets and liabilities

 

(86,331)

 

(43,219)

Net cash provided by operating activities

 

693,493

 

101,744

CASH FLOWS FROM INVESTING ACTIVITIES:

       

Capital expenditures

 

(248,560)

 

(167,693)

Proceeds from sale of other assets

 

27,500

 

14,261

Other investing activities

 

(47,719)

 

(17,580)

Net cash used in investing activities

 

(268,779)

 

(171,012)

CASH FLOWS FROM FINANCING ACTIVITIES:

       

Principal paid in connection with exchange of Convertible Senior Notes

 

(137)

 

(200,000)

       Payments on finance lease obligations

 

(401)

 

(361)

Proceeds from exercise of stock options

 

13,332

 

13,997

Minimum tax withholding requirements

 

(96,992)

 

(35,147)

Cash paid for treasury stock

 

(260,438)

 

(392,882)

Cash dividends paid to stockholders

 

(189,110)

 

(82,937)

Increase in bank overdraft

 

86,574

 

18,917

Net cash used in financing activities

 

(447,172)

 

(678,413)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

(25)

 

(3)

NET DECREASE IN CASH AND CASH EQUIVALENTS

 

(22,483)

 

(747,684)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

1,924,386

 

2,643,205

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$         1,901,903

 

$         1,895,521

DICK'S SPORTING GOODS, INC.

GAAP to NON-GAAP RECONCILIATIONS - UNAUDITED
 

Non-GAAP Earnings Per Share Reconciliation

(in thousands, except per share amounts)
 

 

13 Weeks Ended July 30, 2022

           
 

Net income

After tax
interest from
Convertible
Senior Notes (2)

Numerator used
to compute
earnings per
diluted share

Weighted
average
diluted
shares

Earnings per
diluted
share

GAAP Basis

$    318,502

$                7,992

$                326,494

100,389

$               3.25

% of Net Sales

10.23 %

0.26 %

10.49 %

   

Convertible Senior Notes (1)

(7,992)

(7,992)

(13,881)

 

Non-GAAP Basis

$    318,502

$                     —

$                318,502

86,508

$               3.68

% of Net Sales

10.23 %

— %

10.23 %

   
   

(1)

Adjustment eliminates the impact of assumed share settlement of the Convertible Senior Notes as required by "the if-converted method" under GAAP. The Company retired its Convertible Senior Notes without dilutive effect, due to cash payments for principal, shares received from its convertible bond hedge and shares repurchased to offset share settlement of remaining $59.1 million principal during the 13 weeks ended April 29, 2023. Accordingly, the Company believes reflecting the notes as debt more closely represents the economics of the transaction.

   

(2)

The provision for income taxes for non-GAAP adjustments was calculated at 26% which approximated the Company's blended tax rate.

 

26 Weeks Ended July 30, 2022

           
 

Net income

After tax
interest from
Convertible
Senior Notes (2)

Numerator used
to compute
earnings per
diluted share

Weighted
average
diluted
shares

Earnings per
diluted
share

GAAP Basis

$    579,061

$               16,201

$                595,262

104,509

$                5.70

% of Net Sales

9.96 %

0.28 %

10.24 %

   

Convertible Senior Notes (1)

(16,201)

(16,201)

(15,481)

 

Non-GAAP Basis

$    579,061

$                      —

$                579,061

89,028

$                6.50

% of Net Sales

9.96 %

— %

9.96 %

   
   

(1)

Adjustment eliminates the impact of assumed share settlement of the Convertible Senior Notes as required by "the if-converted method" under GAAP. The Company retired its Convertible Senior Notes without dilutive effect, due to cash payments for principal, shares received from its convertible bond hedge and shares repurchased to offset share settlement of remaining $59.1 million principal during the 13 weeks ended April 29, 2023. Accordingly, the Company believes reflecting the notes as debt more closely represents the economics of the transaction.

   

(2)

The provision for income taxes for non-GAAP adjustments was calculated at 26% which approximated the Company's blended tax rate.

Reconciliation of Gross Capital Expenditures to Net Capital Expenditures

(in thousands) 
 

The following table represents a reconciliation of the Company's gross capital expenditures to its capital expenditures, net
of tenant allowances. 

 
   

26 Weeks Ended

   

July 29,
2023

 

July 30,
2022

Gross capital expenditures

 

$               (248,560)

 

$                (167,693)

Construction allowances provided by landlords

 

30,995

 

29,273

Net capital expenditures

 

$               (217,565)

 

$                (138,420)

Reconciliation of Non-GAAP Net Income and Earnings Per Diluted Share Guidance

(in millions, except per share amounts)

 

 

53 Weeks Ended February 3, 2024

 

Low End

 

High End

 

Income
before
income taxes

Net
Income (2)

Earnings per
diluted share

 

Income
before
income taxes

Net
Income (2)

Earnings per
diluted share

GAAP Basis

$                1,239

$          986

$                 11.33

 

$                1,327

$       1,055

$                    12.13

Business optimization (1)

20

15

   

20

15

 

Non-GAAP Basis

$                1,259

$       1,001

$                 11.50

 

$                1,347

$       1,070

$                    12.30

               
   

(1)

Adjustment eliminates the impact of severance incurred as part of our business optimization.

   

(2) 

The provision for income taxes for non-GAAP adjustments was calculated at 26%, which approximates the Company's blended tax rate.

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