Net income was $112.5 million, or $1.26 per share, compared to $119.4 million, or $1.20 per share, in the prior-year quarter. Analysts had forecast EPS of $1.20.
eCommerce sales grew 21% in the quarter and represented approx.
12% of total net sales compared to 11% in the prior-year period. Total
inventory increased 19% at the end of the quarter, mainly due to strategic
investments to support key growth categories.
During the quarter, the company opened two new DICK’S Sporting Goods stores and closed two DICK’S Sporting Goods stores. As of August 3, 2019, the retailer had 727 DICK’S Sporting Goods stores in 47 states, with approx. 38.6 million square feet, 95 Golf Galaxy stores in 32 states, with approx. 2 million square feet, and 35 Field & Stream stores in 16 states, with approx. 1.7 million square feet.
For the full year of 2019, the company raised its EPS outlook
to a range of $3.30-3.45 from the prior range of $3.20-3.40. Consolidated same
store sales are expected to increase low single digits.
The company expects to open eight new DICK’S Sporting Goods stores and
relocate three DICK’S Sporting Goods stores in 2019. It also expects to
open two new Golf Galaxy stores and relocate two Golf Galaxy stores during the
year. Seven of the new stores are expected to open during the third quarter.
DICK’S Sporting declared a
quarterly dividend of $0.275 per share on its common stock and Class B common
stock, payable on September 27, 2019 to stockholders of record on
September 13, 2019.
On August 22, 2019, DICK’S completed the sale of two of its technology subsidiaries, Blue Sombrero and Affinity Sports, to Stack Sports for $45 million. The sale is expected to result in a one-time gain which will be determined later in the third quarter. The company is continuing the strategic review of its hunt business, including Field & Stream.
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