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Earnings Highlights and Review: Dick's Sporting Goods Quarterly Sales Jumped 10%; EPS Grew 4%

Research Desk Line-up: Hibbett Sports Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 5, 2017 / Pro-Trader Daily publishes post-earnings coverage on Dick's Sporting Goods, Inc. (NYSE: DKS) following the Company's posting of its first quarter fiscal 2017 financial results on May 16, 2017. The sporting goods retailer met earnings expectation and provided outlook for the upcoming quarter and Fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Sporting Goods Stores industry. Pro-TD has currently selected Hibbett Sports, Inc. (NASDAQ: HIBB) for due-diligence and potential coverage as the Company announced on May 18, 2017, its financial results for Q1 FY18 which ended on April 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Hibbett Sports when we publish it.

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Earnings Reviewed

For the first quarter ended April 29, 2017, DKS' net sales increased 9.9% to approximately $1.83 billion compared to net sales of $1.66 billion in Q1 2016. The Company's revenue numbers slightly fell below analysts' consensus estimates of $1.834 billion.

For Q1 2017, DKS' consolidated same store sales increased 2.4%, compared to Q1 2016 consolidated same store sales growth of 0.5% and versus the Company's guidance of an approximate 3% to 4% increase.

For Q1 2017, DKS reported consolidated net income of $58.2 million, or $0.52 per diluted share, compared to consolidated net income of $56.9 million, or $0.50 per diluted share, for Q1 2016, and versus the Company's expectations of $0.48 to $0.53 per diluted share.

On a non-GAAP basis, DKS reported consolidated net income for Q1 2017 of $60.3 million, or $0.54 per diluted share, compared to the Company's expectations of $0.50 to 0.55 per diluted share and Wall Street's expectations for earnings of $0.54 per share. The Company reported quarter non-GAAP results exclude costs incurred to convert former The Sports Authority ("TSA") stores.

Omni-channel Development

DKS stated that following the launch of the Company's new ecommerce platform at the beginning of Q12017, ecommerce sales increased 11.0%. The Company's ecommerce penetration for the reported quarter was 9.3% of total net sales compared to 9.2% during the year ago same period.

In Q1 2017, the Company opened 15 new DICK'S Sporting Goods stores, 2 new Field & Stream stores, and 8 new Golf Galaxy stores. The Company also relocated two DICK'S Sporting Goods stores, and closed one Golf Galaxy store. As of April 29, 2017, the Company operated 691 DICK'S Sporting Goods stores in 47 states, with approximately 36.8 million square feet, 98 Golf Galaxy stores in 32 states, with approximately 2.1 million square feet, and 29 Field & Stream stores in 14 states, with approximately 1.4 million square feet.

Balance Sheet

As of April 29, 2017, DKS had approximately $108 million in cash and cash equivalents and approximately $92 million in outstanding borrowings under its revolving credit facility. Over the course of the last 12 months, the Company has returned over $188 million to shareholders through share repurchases and quarterly dividends.

DKS' total inventory increased 10.0% at the end of Q1 2017 compared to the end Q1 2016.

Capital Allocation

On May 11, 2017, DKS' Board of Directors authorized and declared a quarterly dividend in the amount of $0.17 per share on the Company's Common Stock and Class B Common Stock. The dividend is payable in cash on June 30, 2017 to stockholders of record at the close of business on June 9, 2017.

During Q1 2017, DKS repurchased approximately 0.5 million shares of its common stock at an average cost of $47.92 per share, for a total cost of $23 million. Since the beginning of fiscal 2013, the Company has repurchased approximately $982 million of its common stock, and has approximately $1.0 billion remaining under its authorizations that extend through 2021.

Outlook

For Q2 2017, DKS is forecasting earnings per diluted share in the range of $0.98 to $1.03 compared to earnings per diluted share of $0.82 in Q2 2016. On a non-GAAP basis, the Company currently anticipates reporting earnings per diluted share in the range of $1.02 to $1.07 in the upcoming quarter, excluding severance and other employee-related costs.

DKS is estimating consolidated same store sales to grow approximately 2% to 3% in Q2 2017 compared to a 2.8% increase in Q2 2016. The Company expects to open 13 new DICK'S Sporting Goods stores in the upcoming quarter.

For FY17, DKS is projecting earnings per diluted share in the band of $3.59 to $3.69, which includes approximately $0.05 per diluted share for the 53rd week. The Company currently anticipates reporting non-GAAP earnings per diluted share in the range of $3.65 to $3.75. This excludes severance and other employee-related costs, as well as TSA conversion costs. Consolidated same store sales are currently expected to increase approximately 1% to 3% on a 52 week to 52 week comparative basis, compared to an increase of 3.5% in 2016.

The Company expects to open approximately 43 new DICK'S Sporting Goods stores and relocate approximately 6 DICK'S Sporting Goods stores in 2017. The Company also expects to open approximately eight new Golf Galaxy stores, relocate one Golf Galaxy store, and open eight new Field & Stream stores adjacent to new or relocated DICK'S Sporting Goods stores.

In 2017, the Company anticipates capital expenditures to be approximately $350 million on a net basis and approximately $465 million on a gross basis.

Stock Performance

On Friday, June 02, 2017, Dick's Sporting Goods' stock closed the trading session at $41.01, falling 1.18% from its previous closing price of $41.50. A total volume of 1.58 million shares were exchanged during the session. Shares of the Company have a PE ratio of 15.88 and have a dividend yield of 1.66%. The stock currently has a market cap of $4.67 billion.

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SOURCE: Pro-Trader Daily