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Post Earnings Coverage as DICK'S Sporting Goods Quarterly Sales Increased 10.9%

Upcoming AWS Coverage on Acushnet Holdings Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 21, 2017 / Active Wall St. announces its post-earnings coverage on Dick's Sporting Goods, Inc. (NYSE: DKS). The Company reported its third quarter fiscal 2017 financial and operating results on March 06, 2017. The largest US based full-line omni-channel sporting goods retailer topped earnings estimates. Register with us now for your free membership at:

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One of Dick's Sporting Goods' competitors within the Sporting Goods Stores space, Acushnet Holdings Corp. (NYSE: GOLF), announced on March 07, 2017, that it will publish its Q4 and full-year 2016 financial results on March 22, 2017 at approximately 6:45 a.m. ET. Acushnet will also issue an advisory news release via the Acushnet Investor Relations and the U.S. Securities and Exchange Commission websites on March 22, 2017 announcing availability of the results. AWS will be initiating a research report on Acushnet Holdings in the coming days.

Today, AWS is promoting its earnings coverage on DKS; touching on GOLF. Get our free coverage by signing up to:

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Earnings Reviewed

DICK'S Sporting Goods' net sales for the fourth quarter ended January 28, 2017, increased 10.9% to approximately $2.5 billion. Consolidated same store sales increased 5.0% compared to the Company's guidance of an approximate 3% to 6% increase. Same store sales for DICK'S Sporting Goods increased 5.3%, while Golf Galaxy increased 13.2%. Revenues for the quarter came in in-line with analysts' consensus. Net sales for FY16 increased 9.0% from last year's period to $7.9 billion, reflecting the opening of new stores and an increase of 3.5% in consolidated same store sales.

For Q4 FY16, DICK'S Sporting Goods reported consolidated net income of $90.2 million, or $0.81 per diluted share, compared to consolidated net income of $129.0 million, or $1.13 per diluted share, for Q4 FY15 and against the Company's expectations provided on November 15, 2016, of $1.15 to 1.27 per diluted share. In the reported quarter, DICK'S Sporting Goods incurred pre-tax charges totaling $93 million, or $0.51 per diluted share, comprised of $46 million to write-down the value of its inventory that does not fit within its new merchandising strategy, and $47 million related to asset impairments and store closing charges, as well as costs to convert former Sports Authority ("TSA") and Golfsmith stores.

Excluding these charges, the Company reported consolidated non-GAAP net income for Q4 FY16 of $147.8 million, or $1.32 per diluted share, compared to the Company's expectations provided on November 15, 2016, of $1.19 to 1.31 per diluted share. The Company's earnings numbers surpassed Wall Street's expectations of $1.30.

The Company reported consolidated net income for the 52 weeks ended January 28, 2017, of $287.4 million, or $2.56 per diluted share. For the 52 weeks ended January 30, 2016, the Company reported consolidated net income of $330.4 million, or $2.83 per diluted share.

The Company reported consolidated non-GAAP net income for the 52 weeks ended January 28, 2017, of $349.7 million, or $3.12 per diluted share. For the 52 weeks ended January 30, 2016, the Company reported consolidated non-GAAP net income of $335.1 million, or $2.87 per diluted share.

Omni-channel Development

DICK'S Sporting Goods' ecommerce penetration for Q4 FY16 was 17.9% of total net sales, compared to 15.7% during Q4 FY15. The Company's ecommerce penetration for the 52 weeks ended January 28, 2017, was 11.9% of total net sales compared to 10.3% during the 52 weeks ended January 30, 2016.

In Q4 FY16, DICK'S Sporting Goods opened three former TSA stores as new DICK'S Sporting Goods stores and closed 3 DICK'S Sporting Goods stores, 13 Golf Galaxy stores, and 2 True Runner stores. The Company also acquired 30 Golfsmith stores, which are being converted to the Golf Galaxy brand. Ten of the 13 Golf Galaxy store closures were located in close proximity to an acquired Golfsmith store that is better positioned to serve the Company's customers. As of January 28, 2017, the Company operated 676 DICK'S Sporting Goods stores in 47 states, with approximately 36.0 million square feet, 91 golf specialty stores in 32 states, with approximately 1.9 million square feet, and 27 Field & Stream stores in 13 states, with approximately 1.3 million square feet.

Balance Sheet

DICK'S Sporting Goods ended FY16 with approximately $165 million in cash and cash equivalents and no outstanding borrowings under its revolving credit facility. In FY16, the Company continued to invest in omni-channel growth, while returning over $210 million to shareholders through share repurchases and quarterly dividends.

Capital Allocation

On February 09, 2017, DICK'S Sporting Goods ' Board of Directors authorized and declared a quarterly dividend of $0.17 per share on the Company's Common Stock and Class B Common Stock. The dividend is payable in cash on March 31, 2017, to stockholders of record at the close of business on March 10, 2017.

During Q4 FY16, the Company repurchased approximately 0.6 million shares of its common stock at an average cost of $54.06 per share, for a total cost of $29.7 million. In total for 2016, the Company repurchased approximately 3.1 million shares of its common stock at an average price of $46.55 per share, for a total cost of $145.7 million. Since the beginning of FY13, the Company has repurchased approximately $959 million of common stock and has approximately $1.04 billion remaining under its authorizations that extend through 2021.

Current 2017 Outlook

Full Year 2017 (53 week year) - DICK'S Sporting Goods currently anticipates reporting earnings per diluted share of approximately $3.63 to 3.73 for FY17, which includes approximately $0.05 per diluted share for the 53rd week. The Company's earnings per diluted share guidance include the expectation of share repurchases to fully offset dilution in 2017.

Excluding TSA conversion costs, the Company currently anticipates reporting non-GAAP earnings per diluted share of approximately $3.65 to $3.75. The Company reported non-GAAP earnings per diluted share of $3.12 for the 52 weeks ended January 28, 2017.

Consolidated same store sales are currently expected to increase approximately 2% 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 seven DICK'S Sporting Goods stores in 2017.

DICK'S Sporting Goods currently anticipates reporting earnings per diluted share of approximately $0.48 to 0.53 in Q1 FY17 compared to earnings per diluted share of $0.50 in Q1 FY16. The Company currently anticipates reporting non-GAAP earnings per diluted share in the range of $0.50 to 0.55 in the upcoming quarter. Consolidated same store sales are currently expected to increase approximately 3% to 4% in Q1 FY17 compared to a 0.5% increase in Q1 FY16.

The Company expects to open 16 new DICK'S Sporting Goods stores, relocate 2 DICK'S Sporting Goods stores, and open 2 new Field & Stream stores and 9 new Golf Galaxy stores in Q1 FY17.

Stock Performance

At the closing bell, on Monday, March 20, 2017, Dick's Sporting Goods' stock marginally fell 0.81%, ending the trading session at $47.96. A total volume of 1.85 million shares were traded at the end of the day. The stock is trading at a PE ratio of 18.71 and has a dividend yield of 1.42%.

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