PITTSBURGH, Nov. 23, 2021 /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 third quarter ended October 30, 2021.

NIKE Women's pad in DICK'S Sporting Goods (Cranberry Twp., PA)

Third Quarter Results

Net sales for the third quarter of 2021 were $2.75 billion, an increase of 13.9% compared to the third quarter of 2020 and a 40.0% increase compared to the third quarter of 2019. Consolidated same store sales for the third quarter of 2021 increased 12.2%, which followed consolidated same store sales increases of 23.2% in the third quarter of 2020 and 6.0% in the third quarter of 2019. eCommerce sales increased 97% compared to the third quarter of 2019 and 1% compared to the third quarter of 2020. eCommerce penetration has grown from 13% of total net sales in the third quarter of 2019 to 19% for the third quarter of 2021. eCommerce penetration was approximately 21% in the third quarter of 2020.

Driven by strong sales and gross margin rate expansion, the Company reported consolidated net income for the third quarter ended October 30, 2021 of $316.5 million, or $2.78 per diluted share. The Company reported consolidated net income for the third quarter ended October 31, 2020 of $177.2 million, or $1.84 per diluted share, which included approximately $48 million of pre-tax expenses in response to COVID-19. The Company reported consolidated net income for the third quarter ended November 2, 2019 of $57.6 million, or $0.66 per diluted share.

On a non-GAAP basis, the Company reported consolidated net income for the quarter ended October 30, 2021 of $322.2 million, or $3.19 per diluted share, compared to consolidated net income of $182.2 million, or $2.01 per diluted share, for the quarter ended October 31, 2020. For the quarters ended October 30, 2021 and October 31, 2020, non-GAAP consolidated net income excluded non-cash amortization of the debt discount associated with the Company's convertible senior notes and included the share impact of the convertible note hedge purchased by the Company, which is antidilutive for GAAP purposes. For the third quarter ended November 2, 2019, the Company reported non-GAAP consolidated net income of $44.8 million, or $0.52 per diluted share. The GAAP to non-GAAP reconciliations are included in a table later in the release under the heading "GAAP to Non-GAAP Reconciliations."

"Our strategies continue to work as we reimagine the athlete experience in our core business and with new concepts. As we said before, we believe this will be the most transformational year in our history, and we expect to continue this transformation into 2022. I couldn't be more excited about the future of DICK'S Sporting Goods," said Ed Stack, Executive Chairman.

"We are extremely pleased to announce a record third quarter in which we delivered significant sales and earnings growth over both last year and 2019. Consumer demand remained strong, and our differentiated product assortment continued to drive exceptional sales and merchandise margin momentum. I'd like to thank all of our teammates for their hard work and commitment to DICK'S Sporting Goods, which helped make this performance possible," said Lauren Hobart, President and Chief Executive Officer. "Our fourth quarter is off to a strong start, and we are pleased to increase our full year outlook for the third time this year. Looking ahead, we remain very confident in the longer-term prospects of our business."

Balance Sheet

The Company ended the third quarter of 2021 with approximately $1.37 billion in cash and cash equivalents and no outstanding borrowings under its $1.855 billion revolving credit facility.

Total inventory increased 7.3% at the end of the third quarter of 2021 compared to the end of the third quarter of 2020.

Year-to-Date Results

Net sales for the 39 weeks ended October 30, 2021 were $8.94 billion, an increase of 38.4% compared to the 39 weeks ended October 31, 2020 and a 45.6% increase compared to the 39 weeks ended November 2, 2019. Consolidated same store sales for the 39 weeks ended October 30, 2021 increased 36.6% compared to the 2020 period, which followed a consolidated same store sales increase of 5.8% for the 2020 period and a 3.1% increase for the 2019 period. eCommerce sales increased 115% compared to the 39 weeks ended November 2, 2019, and as expected, eCommerce sales decreased 8% compared to the 39 weeks ended October 31, 2020, which included a period of temporary store closures in March, April and May. eCommerce penetration has grown from 13% of total net sales in the 2019 period to 19% in the 2021 period. eCommerce penetration was approximately 28% in the 39 weeks ended October 31, 2020. 

Driven by strong sales and gross margin rate expansion, the Company reported consolidated net income for the 39 weeks ended October 30, 2021 of $1.17 billion, or $10.70 per diluted share, compared to consolidated net income for the 39 weeks ended October 31, 2020 of $310.6 million, or $3.44 per diluted share. The Company incurred approximately $15 million of pre-tax incremental safety costs in response to COVID-19 during the 39 weeks ended October 30, 2021. During last year's period, the Company incurred approximately $124 million of pre-tax expenses in response to COVID-19. The Company reported consolidated net income for the 39 weeks ended November 2, 2019 of $227.6 million, or $2.53 per diluted share.

On a non-GAAP basis, the Company reported consolidated net income of $1.19 billion, or $12.06 per diluted share, for the 39 weeks ended October 30, 2021, and consolidated net income of $321.3 million, or $3.65 per diluted share, for the 39 weeks ended October 31, 2020. For the periods ended October 30, 2021 and October 31, 2020, non-GAAP consolidated net income excluded non-cash amortization of the debt discount associated with the Company's convertible senior notes and included the share impact of the convertible note hedge purchased by the Company, which is antidilutive for GAAP purposes. For the 39 weeks ended November 2, 2019, the Company reported non-GAAP consolidated net income of $215.8 million, or $2.39 per diluted share. The GAAP to non-GAAP reconciliations are included in a table later in the release under the heading "GAAP to Non-GAAP Reconciliations."

Capital Allocation

On November 22, 2021, the Company's Board of Directors authorized and declared a quarterly dividend in the amount of $0.4375 per share on the Company's Common Stock and Class B Common Stock. The dividend is payable in cash on December 29, 2021 to stockholders of record at the close of business on December 10, 2021.

The Company paid over $500 million in dividends to stockholders during the 13 weeks ended October 30, 2021, which included the previously announced special dividend of $5.50 per share on the Company's Common Stock and Class B Common Stock.

During the third quarter of 2021, the Company repurchased 2.17 million shares of its common stock at an average price of $125.80 per share, for a total cost of $273.4 million, under its share repurchase program. For the 39 weeks ended October 30, 2021, the Company repurchased 4.0 million shares of common stock at an average price of $106.21 per share, for a total cost of $426.1 million. The Company has $605.1 million remaining under its authorization that extends through June 2024.

For the 39 weeks ended October 30, 2021, capital expenditures totaled $231.1 million on a gross basis, or $203.4 million net of construction allowances provided by landlords. For the 39 weeks ended October 31, 2020, capital expenditures totaled $156.4 million on a gross basis, or $114.1 million net of construction allowances provided by landlords. 

Full Year 2021 Outlook

The Company's Full Year Outlook for 2021 is presented below:




2021 Outlook




Low End

High End

Midpoint % Change

(in millions, except per share amounts)

2019

2020

2021 (E)

vs 2019

vs 2020

Net Sales

$

8,751


$

9,584


$

12,120


$

12,190


39

%

27

%

Consolidated same store sales

3.7

%

9.9

%

24.0

%

25.0

%










Income before income taxes

$

408


$

712


$

1,860


$

1,890


360

%

163

%

% of Net Sales

4.7

%

7.4

%

15.3

%

15.5

%



Income before income taxes - non-GAAP

$

440


$

733


$

1,890


$

1,920


333

%

160

%

% of Net Sales - non-GAAP

5.0

%

7.6

%

15.6

%

15.8

%










Earnings per diluted share

$

3.34


$

5.72


$

12.88


$

13.06


288

%

127

%

Earnings per diluted share - non-GAAP

$

3.69


$

6.12


$

14.60


$

14.80


298

%

140

%

Weighted average diluted shares

89


93


110.5


110.5




Weighted average diluted shares - non-GAAP

89


89


99.0


99.0











Gross capital expenditures

$

217


$

224


$

370


$

395




Net capital expenditures

$

180


$

167


$

300


$

325




 

  • Due to the uneven nature of sales and earnings in 2020, the Company planned 2021 off of a 2019 baseline and for the same reason believes it is important to compare 2021 against both 2019 and 2020.
     
  • The Company's non-GAAP outlook for 2021 and its non-GAAP results for 2020 exclude amortization of the non-cash debt discount on the Company's convertible senior notes and diluted shares that are designed to be offset at settlement by shares delivered from the convertible note hedge purchased by the Company. Non-GAAP results for 2019 exclude hunt restructuring charges, a gain on the sale of subsidiaries, non-cash asset impairments and the favorable settlement of a litigation contingency.
     
  • As a result of actions taken to support its teammates as well as impacts from its temporary store closures in 2020, the Company incurred approximately $175 million of pre-tax incremental teammate compensation and safety costs. Through the first nine months of fiscal 2021, the Company has incurred approximately $15 million of COVID-related safety costs.

Conference Call Info

The Company will host a conference call today at 10:00 a.m. Eastern Time to discuss the third 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.

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 consolidated non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP income before income taxes, 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. Management believes that excluding non-cash debt discount amortization from its convertible senior notes and including the share impact from the convertible note hedge is useful to investors because it provides a more complete view of the economics of the transaction. Management also uses certain 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.

Fiscal 2021 Consolidated Same Store Sales 

Consolidated same store sales include stores that were temporarily closed during fiscal 2020 as a result of the COVID-19 pandemic. The method of calculating consolidated same store sales varies across the retail industry, including the treatment of temporary store closures as a result of COVID-19. Accordingly, our method of calculating this metric may not be the same as other retailers' methods. For additional information on consolidated same store sales, please see our most recent Annual Report on Form 10-K for the fiscal year ended January 30, 2021, filed with the Securities and Exchange Commission on March 24, 2021.

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. These forward-looking 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, including 2021 outlook for earnings and sales; capital expenditures; share repurchases and dividends; and anticipated store openings, relocations, and closures.

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: the impact on our business, operations and financial results due to the duration and scope of the COVID-19 pandemic, including the potential impact due to disruptions in our vendors' supply chains and due to restrictions imposed by federal, state, and local governments in response to increases in the number of COVID-19 cases in areas in which we operate; changes in consumer discretionary spending; the extent to which changes in consumer demand due to the COVID-19 pandemic will continue and whether new trends will emerge after the impact of the COVID-19 pandemic subsides; store closures and other impacts to our business resulting from civil disturbances; investments in omni-channel growth not producing the anticipated benefits within the expected time-frame or at all; risks relating to private brands and new retail concepts; investments in business transformation initiatives not producing the anticipated benefits within the expected time-frame or at all; the amount devoted to strategic investments and the timing and success of those investments; inventory turn; changes in the competitive market and competition amongst retailers, including an increase in promotional activity; changes in consumer demand or shopping patterns and the ability to identify new trends and have the right trending products in stores and online; the impact of a high rate of inflation on our business; changes in existing tax, labor, foreign trade and other laws and regulations, including those imposing new taxes, surcharges, or tariffs; 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, 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; the loss of key personnel, including Edward W. Stack, Executive Chairman, or Lauren Hobart, President and Chief Executive Officer; developments with sports leagues, professional athletes or sports superstars, including disruptions and cancellations due to COVID-19; weather-related disruptions and seasonality of the Company's business; and risks associated with being a controlled company.

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 24, 2021 and our Quarterly Report filed with the SEC on August 25, 2021. 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.

About DICK'S Sporting Goods, Inc.

Founded in 1948, DICK'S Sporting Goods is a leading omni-channel sporting goods retailer offering an extensive assortment of authentic, high-quality sports equipment, apparel, footwear and accessories. As of October 30, 2021, the Company operated 734 DICK'S Sporting Goods locations across the United States, serving and inspiring athletes and outdoor enthusiasts to achieve their personal best through a combination of its dedicated teammates, in-store services and unique specialty shop-in-shops dedicated to Team Sports, Athletic Apparel, Golf, Outdoor, Fitness and Footwear.

Headquartered in Pittsburgh, DICK'S also owns and operates Golf Galaxy, Field & Stream and Public Lands specialty stores, as well as GameChanger, a youth sports mobile app for scheduling, communications, live scorekeeping and video streaming. DICK'S offers its products through a dynamic eCommerce platform that is integrated with its store network and provides athletes with the convenience and expertise of a 24-hour storefront. For more information, visit the Investor Relations page at dicks.com.

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



October 30,
2021


% of

Sales


October 31,
2020


% of

Sales(2)


November 2,
2019 (1)


% of

Sales(2)














Net sales


$

2,747,647



100.00%


$

2,412,112



100.00

%


$

1,962,204



100.00

%

Cost of goods sold, including
occupancy and distribution costs


1,691,071



61.55


1,569,938



65.09


1,381,562



70.41














GROSS PROFIT


1,056,576



38.45


842,174



34.91


580,642



29.59














Selling, general and administrative
expenses


631,943



23.00


591,117



24.51


531,704



27.10

Pre-opening expenses


4,765



0.17


4,964



0.21


3,313



0.17














INCOME FROM OPERATIONS


419,868



15.28


246,093



10.20


45,625



2.33














(Gain) Loss on sale of subsidiaries


—



—


—



—


(33,779)



(1.72)

Interest expense


13,789



0.50


12,769



0.53


4,278



0.22

Other (income) expense


(1,748)



(0.06)


(3,746)



(0.16)


(2,020)



(0.10)














INCOME BEFORE INCOME TAXES


407,827



14.84


237,070



9.83


77,146



3.93














Provision for income taxes


91,314



3.32


59,854



2.48


19,562



1.00














NET INCOME


$

316,513



11.52%


$

177,216



7.35

%


$

57,584



2.93

%














EARNINGS PER COMMON SHARE:













Basic


$

3.79





$

2.10





$

0.68




Diluted


$

2.78





$

1.84





$

0.66

















WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:













Basic


83,537





84,422





85,048




Diluted


113,664





96,571





86,601






























(1) Due to the uneven nature of sales and earnings in 2020, the Company planned 2021 off of a 2019 baseline and
believes it is important to compare 2021 against both 2019 and 2020.














(2) 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)




39 Weeks Ended



October 30,
2021


% of

Sales


October 31,
2020


% of

Sales


November 2,
2019 (1)


% of

Sales (2)














Net sales


$

8,941,208



100.0

%


$

6,458,712



100.0

%


$

6,142,093



100.0

%

Cost of goods sold, including
occupancy and distribution costs


5,488,928



61.39


4,460,336



69.06


4,320,571



70.34














GROSS PROFIT


3,452,280



38.61


1,998,376



30.94


1,821,522



29.66














Selling, general and administrative expenses


1,880,505



21.03


1,537,371



23.80


1,539,934



25.07

Pre-opening expenses


12,545



0.14


9,728



0.15


4,887



0.08














INCOME FROM OPERATIONS


1,559,230



17.44


451,277



6.99


276,701



4.50














(Gain) Loss on sale of subsidiaries


—



—


—



—


(33,779)



(0.55)

Interest expense


40,971



0.46


35,496



0.55


12,909



0.21

Other (income) expense


(15,893)



(0.18)


(4,731)



(0.07)


(10,340)



(0.17)














INCOME BEFORE INCOME TAXES


1,534,152



17.16


420,512



6.51


307,911



5.01














Provision for income taxes


360,374



4.03


109,875



1.70


80,268



1.31














NET INCOME


$

1,173,778



13.13%


$

310,637



4.81%


$

227,643



3.71

%














EARNINGS PER COMMON SHARE:













Basic


$

13.93





$

3.69





$

2.57




Diluted


$

10.70





$

3.44





$

2.53

















WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:













Basic


84,266





84,095





88,671




Diluted


109,648





90,430





90,130






























(1) Due to the uneven nature of sales and earnings in 2020, the Company planned 2021 off of a 2019 baseline and
for the same reason believes it is important to compare 2021 against both 2019 and 2020.














(2) Column does not add due to rounding























 

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - UNAUDITED

(In thousands)




October 30,
2021


October 31,
2020


January 30,
2021

ASSETS







CURRENT ASSETS:







Cash and cash equivalents


$

1,372,892



$

1,059,994



$

1,658,067


Accounts receivable, net


89,479



77,212



53,149


Income taxes receivable


683



5,453



6,396


Inventories, net


2,490,438



2,319,992



1,953,568


Prepaid expenses and other current assets


92,673



82,648



88,470


Total current assets


4,046,165



3,545,299



3,759,650









Property and equipment, net


1,314,567



1,336,676



1,300,265


Operating lease assets


2,070,135



2,177,006



2,149,913


Intangible assets, net


87,195



91,585



90,051


Goodwill


245,857



245,857



245,857


Deferred income taxes


42,862



27,717



51,475


Other assets


192,498



141,350



155,648


TOTAL ASSETS


$

7,999,279



$

7,565,490



$

7,752,859









LIABILITIES AND STOCKHOLDERS' EQUITY







CURRENT LIABILITIES:







Accounts payable


$

1,399,716



$

1,394,904



$

1,258,093


Accrued expenses


522,010



449,304



518,134


Operating lease liabilities


478,674



474,803



472,670


Income taxes payable


28,430



24,805



40,997


Deferred revenue and other liabilities


239,472



193,956



260,304


Total current liabilities


2,668,302



2,537,772



2,550,198


LONG-TERM LIABILITIES:







Revolving credit borrowings


—



—



—


 Convertible senior notes due 2025


441,186



411,256



418,493


Long-term operating lease liabilities


2,135,515



2,310,318



2,259,308


Other long-term liabilities


223,459



184,505



185,326


Total long-term liabilities


2,800,160



2,906,079



2,863,127


COMMITMENTS AND CONTINGENCIES







STOCKHOLDERS' EQUITY:







Common stock


586



608



612


Class B common stock


237



239



237


Additional paid-in capital


1,476,701



1,415,909



1,442,298


Retained earnings


3,647,621



2,873,263



3,064,702


Accumulated other comprehensive income (loss)


9



(114)



(49)


Treasury stock, at cost


(2,594,337)



(2,168,266)



(2,168,266)


Total stockholders' equity


2,530,817



2,121,639



2,339,534


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$

7,999,279



$

7,565,490



$

7,752,859









 

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(In thousands)




39 Weeks Ended



October 30,
2021


October 31,
2020

CASH FLOWS FROM OPERATING ACTIVITIES:





Net income


$

1,173,778



$

310,637


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





Depreciation, amortization, and other


237,666



239,666


Amortization of convertible notes discount and issuance costs


22,693



14,345


Non-cash lease costs


(80,734)



(1,199)


Deferred income taxes


8,613



(22,492)


Stock-based compensation


39,380



35,631


Changes in assets and liabilities:





Accounts receivable


(20,655)



(12,099)


Inventories


(536,870)



(121,435)


Prepaid expenses and other assets


(7,995)



(384)


Accounts payable


194,084



381,383


Accrued expenses


(13,918)



30,035


Income taxes payable / receivable


(6,854)



14,659


Construction allowances provided by landlords


27,677



42,314


Deferred revenue and other liabilities


(30,219)



6,454


Net cash provided by operating activities


1,006,646



917,515


CASH FLOWS FROM INVESTING ACTIVITIES:





 Capital expenditures


(231,087)



(156,444)


        Proceeds from sale of other assets


9,671



—


        Deposits and other investing activities


(19,130)



(96)


Net cash used in investing activities


(240,546)



(156,540)


CASH FLOWS FROM FINANCING ACTIVITIES:





Revolving credit borrowings


—



1,291,700


Revolving credit repayments


—



(1,515,800)


Proceeds from issuance of convertible notes


—



575,000


Payments for purchase of bond hedges


—



(161,057)


Proceeds from issuance of warrants


—



105,225


Transaction costs paid in connection with convertible notes issuance


—



(17,396)


        Payments on other long-term debt and finance lease obligations


(553)



(612)


        Proceeds from exercise of stock options


24,930



25,472


Minimum tax withholding requirements


(29,893)



(3,911)


Cash paid for treasury stock


(426,111)



—


Cash dividends paid to stockholders


(567,245)



(80,874)


(Decrease) increase in bank overdraft


(52,461)



11,932


Net cash (used in) provided by financing activities


(1,051,333)



229,679


EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS


58



6


NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS


(285,175)



990,660


CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD


1,658,067



69,334


CASH AND CASH EQUIVALENTS, END OF PERIOD


$

1,372,892



$

1,059,994


 

Store Count and Square Footage 


The stores that opened during the third quarter of 2021 are as follows:


Store


Market


Concept

Chicago Ridge, IL


Chicago


DICK'S Sporting Goods

Grand Junction, CO


Grand Junction


DICK'S Sporting Goods

Norridge, IL


Chicago


DICK'S Sporting Goods

Framingham, MA


Boston


Golf Galaxy

Cranberry, PA


Pittsburgh


Public Lands

Polaris, OH


Columbus


Public Lands

Orland Park, IL


Chicago


Outlet Store

Olathe, KS


Kansas City


Outlet Store

Royal Palm Beach, FL


West Palm Beach


Outlet Store

 

The following represents a reconciliation of beginning and ending stores and square footage for the periods indicated:


Store Count:




Fiscal 2021


Fiscal 2020



DICK'S
Sporting
Goods (1)


Specialty
Concept
Stores (2)


Total


DICK'S
Sporting
Goods


Specialty
Concept
Stores (2)


Total

Beginning stores


728



126



854



726



124



850


Q1 New stores


2



—



2



1



2



3


Q2 New stores


1



1



2



—



3



3


Q3 New stores


3



6



9



6



5



11


Closed stores


—



1



1



1



5



6


Ending stores


734



132



866



732



129



861















Relocated stores


9



—



9



12



3



15


 

Square Footage:

(in millions)




DICK'S Sporting
Goods (1)


Specialty Concept
Stores (2)


Total (3)

Q1 2020


38.4



3.4



41.8


Q2 2020


38.4



3.5



41.9


Q3 2020


38.7



3.6



42.3


Q4 2020


38.5



3.5



42.0


Q1 2021


38.7



3.4



42.1


Q2 2021


38.8



3.5



42.3


Q3 2021


38.9



3.7



42.7




(1) 

Includes two new DICK'S House of Sport stores which were relocations of former DICK'S Sporting Goods stores.

(2) 

Includes the Company's Golf Galaxy, Field & Stream and Public Lands stores, as well as the Company's outlet stores, excluding temporary locations. In some markets the Company operates DICK'S Sporting Goods stores adjacent to its specialty concept stores on the same property with a pass-through for customers. The Company refers to this format as a "combo store" and includes combo store openings within both the DICK'S Sporting Goods and specialty concept store reconciliations, as applicable. As of October 30, 2021, the Company operated 29 combo stores.

(3) 

Column may not add due to rounding.

 

DICK'S SPORTING GOODS, INC.

GAAP to NON-GAAP RECONCILIATIONS - UNAUDITED

(in thousands, except per share amounts)


Non-GAAP Net Income and Earnings Per Share Reconciliations

(in thousands, except per share amounts)



13 Weeks Ended October 30, 2021









Income from
operations

Interest
expense

Income before
income taxes

Net

 income (2)

Diluted
shares
outstanding
during
period

Earnings
per
diluted
share

GAAP Basis

$

419,868


$

13,789


$

407,827


$

316,513


113,664


$

2.78


% of Net Sales

15.28

%

0.50

%

14.84

%

11.52

%



Convertible senior notes (1)

—


(7,731)


7,731


5,720


(12,794)



Non-GAAP Basis

$

419,868


$

6,058


$

415,558


$

322,233


100,870


$

3.19


% of Net Sales

15.28

%

0.22

%

15.12

%

11.73

%





(1) 

Amortization of the non-cash debt discount on the Company's convertible senior notes and diluted shares that are designed to be offset at settlement by shares delivered from the convertible note hedge purchased by the Company.

(2) 

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

 


39 Weeks Ended October 30, 2021









Income from
operations

Interest
expense

Income before
income taxes

Net

 income (2)

Diluted
shares
outstanding
during
period

Earnings
per
diluted
share

GAAP Basis

$

1,559,230


$

40,971


$

1,534,152


$

1,173,778


109,648


$

10.70


% of Net Sales

17.44

%

0.46

%

17.16

%

13.13

%



Convertible senior notes (1)

—


(22,693)


22,693


16,793


(10,896)



Non-GAAP Basis

$

1,559,230


$

18,278


$

1,556,845


$

1,190,571


98,752


$

12.06


% of Net Sales

17.44

%

0.20

%

17.41

%

13.32

%





(1) 

Amortization of the non-cash debt discount on the Company's convertible senior notes and diluted shares that are designed to be offset at settlement by shares delivered from the convertible note hedge purchased by the Company.

(2) 

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

 


13 Weeks Ended October 31, 2020









Income from
operations

Interest
expense

Income before
income taxes

Net

 income (2)

Diluted
shares
outstanding
during
period

Earnings
per
diluted
share

GAAP Basis

$

246,093


$

12,769


$

237,070


$

177,216


96,571


$

1.84


% of Net Sales

10.20

%

0.53

%

9.83

%

7.35

%



Convertible senior notes (1)

—


(6,683)


6,683


4,945


(5,976)



Non-GAAP Basis

$

246,093


$

6,086


$

243,753


$

182,161


90,595


$

2.01


% of Net Sales

10.20

%

0.25

%

10.11

%

7.55

%





(1) 

Amortization of the non-cash debt discount on the Company's convertible senior notes and diluted shares that are designed to be offset at settlement by shares delivered from the convertible note hedge purchased by the Company.

(2) 

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

 



39 Weeks Ended October 31, 2020









Income from
operations

Interest
expense

Income before
income taxes

Net

income (2)

Diluted
shares
outstanding
during
period

Earnings
per
diluted
share

GAAP Basis

$

451,277


$

35,496


$

420,512


$

310,637


90,430


$

3.44


% of Net Sales

6.99

%

0.55

%

6.51

%

4.81

%



Convertible senior notes (1)

—


(14,345)


14,345


10,615


(2,365)



Non-GAAP Basis

$

451,277


$

21,151


$

434,857


$

321,252


88,065


$

3.65


% of Net Sales

6.99

%

0.33

%

6.73

%

4.97

%





(1) 

Amortization of the non-cash debt discount on the Company's convertible senior notes and diluted shares that are designed to be offset at settlement by shares delivered from the convertible note hedge purchased by the Company. This amount includes $1.1 million of amortization recognized in the fiscal quarter ended May 2, 2020.

(2) 

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

 



13 Weeks Ended November 2, 2019









Selling, general
and
administrative
expenses

Income from
operations

Gain on sale of
subsidiaries

Income
before
income
taxes

Net

income (4)

Earnings
per
diluted
share

GAAP Basis

$

531,704


$

45,625


$

(33,779)


$

77,146


$

57,584


$

0.66


% of Net Sales

27.10

%

2.33

%

(1.72)

%

3.93

%

2.93

%


Gain on sale of subsidiaries (1)

—


—


33,779


(33,779)


(24,996)



Hunt restructuring charges (2)

(8,938)


8,938


—


8,938


6,614



Non-cash asset impairment (3)

(7,630)


7,630


—


7,630


5,646



Non-GAAP Basis

$

515,136


$

62,193


$

—


$

59,935


$

44,848


$

0.52


% of Net Sales

26.25

%

3.17

%

—

%

3.05

%

2.29

%




(1) 

 Gain on sale of Blue Sombrero and Affinity Sports subsidiaries.

(2) 

Charge related to the Company's exit from eight Field & Stream stores, which were subleased to Sportsman's Warehouse.

(3) 

Non-cash impairment charge to reduce the carrying value of a corporate aircraft held for sale to its fair market value.

(4) 

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


 


39 Weeks Ended November 2, 2019









Selling, general
and
administrative
expenses

Income
from operations

Gain on sale of
subsidiaries

Income
before
income
taxes

Net
income (5)

Earnings
per
diluted
share

GAAP Basis

$

1,539,934


$

276,701


$

(33,779)


$

307,911


$

227,643


$

2.53


% of Net Sales

25.07

%

4.50

%

(0.55)

%

5.01

%

3.71

%


Gain on sale of subsidiaries (1)

—


—


33,779


(33,779)


(24,996)



Hunt restructuring charges (2)

(8,938)


8,938


—


8,938


6,614



Non-cash asset impairment (3)

(15,253)


15,253


—


15,253


11,287



Litigation contingency settlement (4)

6,411


(6,411)


—


(6,411)


(4,744)



Non-GAAP Basis

$

1,522,154


$

294,481


$

—


$

291,912


$

215,804


$

2.39


% of Net Sales

24.78

%

4.79

%

—

%

4.75

%

3.51

%




(1) 

Gain on sale of Blue Sombrero and Affinity Sports subsidiaries.

(2) 

Charge related to the Company's exit from eight Field & Stream stores, which were subleased to Sportsman's Warehouse.

(3) 

Non-cash impairment charge to reduce the carrying value of a corporate aircraft held for sale to its fair market value.

(4) 

Favorable settlement of a previously accrued litigation contingency.

(5) 

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

 



52 Weeks Ended January 30, 2021









Income from
operations

Interest
expense

Income
before
income taxes

Net

income (2)

Diluted
shares
outstanding
during
period

Earnings
per
diluted
share

GAAP Basis

$

741,477


$

48,812


$

711,735


$

530,251


92,639


$

5.72


% of Net Sales

7.74

%

0.51

%

7.43

%

5.53

%



Convertible senior notes (1)

—


(21,581)


21,581


15,970


(3,460)



Non-GAAP Basis

$

741,477


$

27,231


$

733,316


$

546,221


89,179


$

6.12


% of Net Sales

7.74

%

0.28

%

7.65

%

5.70

%





(1) 

Amortization of the non-cash debt discount on the Company's convertible senior notes and diluted shares that are designed to be offset at settlement by shares delivered from the convertible note hedge purchased by the Company. This amount includes $1.1 million of amortization recognized in the fiscal quarter ended May 2, 2020.

(2) 

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

 


52 Weeks Ended February 1, 2020


Gross profit

Selling,
general and
administrative
expenses

Income
from
operations

Gain on

sale of
subsidiaries

Income
before
income
taxes

Net

 income (5)

Diluted
shares
outstanding
during
period

Earnings
per
diluted
share

GAAP Basis

$

2,554,558


$

2,173,677


$

375,613


$

(33,779)


$

407,704


$

297,462


89,066


$

3.34


% of Net Sales

29.19

%

24.84

%

4.29

%

(0.39)

%

4.66

%

3.40

%



Hunt restructuring charges (1)

13,135


(44,588)


57,723


—


57,723


50,072




Gain on sale of subsidiaries (2)

—


—


—


33,779


(33,779)


(24,996)




Other asset impairments (3)

—


(15,253)


15,253


—


15,253


11,287




Litigation contingency settlement (4)

—


6,411


(6,411)


—


(6,411)


(4,744)




Non-GAAP Basis

$

2,567,693


$

2,120,247


$

442,178


$

—


$

440,490


$

329,081


89,066


$

3.69


% of Net Sales

29.34

%

24.23

%

5.05

%

—

%

5.03

%

3.76

%





(1) 

Hunt restructuring charges of $57.7 million included $35.7 million of non-cash impairments of a trademark and store assets, a $13.1 million write-down of inventory and an $8.9 million charge related to our exit from eight Field & Stream stores in the third quarter, which were subleased to Sportsman's Warehouse.

(2) 

Gain on sale of Blue Sombrero and Affinity Sports subsidiaries.

(3) 

Non-cash impairment charges to reduce the carrying value of a corporate aircraft to its fair market value, which was subsequently sold.

(4) 

Favorable settlement of a previously accrued litigation contingency.

(5) 

Except for the impairment of the trademark, the provision for income taxes for non-GAAP adjustments was calculated at 26%, which approximated the Company's blended tax rate. The trademark impairment charge of $28.3 million was not deductible for tax purposes.

 

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. 




39 Weeks Ended



October 30,
2021


October 31,
2020

Gross capital expenditures


$

(231,087)



$

(156,444)


Construction allowances provided by landlords


27,677



42,314


Net capital expenditures


$

(203,410)



$

(114,130)


 

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

(in millions, except per share amounts)



52 Weeks Ended January 29, 2022


Low End


High End












Income
before
income
taxes

Net

income  (2)

Weighted
average
diluted
shares

Earnings
per
diluted
share


Income
before
income
taxes

Net

income  (2)

Weighted
average
diluted
shares

Earnings
per
diluted
share

GAAP Basis

$

1,860


$

1,423


110.5


$

12.88



$

1,890


$

1,443


110.5


$

13.06


Convertible senior notes (1)

30


22


(11.5)




30


22


(11.5)



Non-GAAP Basis

$

1,890


$

1,445


99.0


$

14.60



$

1,920


$

1,465


99.0


$

14.80


% of Net Sales

15.6

%

11.9

%




15.8

%

12.0

%















(1) 

Amortization of the non-cash debt discount on the Company's convertible senior notes and diluted shares that are designed to be offset at settlement by shares delivered from the convertible note hedge purchased by the Company.

(2) 

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

 

DICK'S Sporting Goods Logo. (PRNewsfoto/DICK'S Sporting Goods, Inc.)

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SOURCE DICK'S Sporting Goods, Inc.