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Dick's Sporting Goods Inc. Reports Operating Results (10-Q)

August 24, 2012 | About:

10qk

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Dick's Sporting Goods Inc. (DKS) filed Quarterly Report for the period ended 2012-07-28.

Dicks Sporting Goods Inc has a market cap of $6.02 billion; its shares were traded at around $49.23 with a P/E ratio of 22.2 and P/S ratio of 1.2. The dividend yield of Dicks Sporting Goods Inc stocks is 1%. Dicks Sporting Goods Inc had an annual average earning growth of 11.4% over the past 10 years.

Highlight of Business Operations:

· Consolidated same store sales performance For the 26 weeks ended July 28, 2012, the Companys consolidated same store sales increased 5.9% compared to a 2.3% increase during the same period in fiscal 2011. The Company believes that its ability to consistently deliver increases in consolidated same store sales will be a key factor in achieving its targeted levels of earnings per share growth and continuing its store expansion program.

Net sales for the current quarter increased 10% to $1.4 billion, due primarily to the growth of our store network and the 3.8% increase in consolidated same store sales. The 3.8% consolidated same store sales increase consisted of a 2.9% increase at Dicks Sporting Goods stores, a 4.4% increase at Golf Galaxy and a 34.6% increase in the Companys eCommerce business. The inclusion of the eCommerce business resulted in an increase of approximately 75 basis points to the Companys consolidated same store sales calculation for the 13 weeks ended July 28, 2012, compared to 58 basis points for the 13 weeks ended July 30, 2011.

Gross profit increased approximately 12% to $447.8 million for the current quarter from $401.1 million for the 13 weeks ended July 30, 2011. The 47 basis point increase is due primarily to a 37 basis point decrease in fixed occupancy costs resulting primarily from the leverage on the increase in sales compared to last years second quarter and merchandise margin expansion of 29 basis points, partially offset by a 19 basis point increase in freight and distribution expenses resulting from a higher year-over-year mix of eCommerce sales. Every 10 basis point change in merchandise margin would have impacted the earnings before income taxes for the current quarter by approximately $1.4 million.

Net sales for the period increased 12% to $2.7 billion, due primarily to the growth of our store network and a 5.9% increase in consolidated same store sales. The 5.9% consolidated same store sales increase consisted of a 4.9% increase at Dicks Sporting Goods stores, a 7.8% increase at Golf Galaxy and a 34.1% increase in the Companys eCommerce business. The inclusion of the eCommerce business resulted in an increase of approximately 71 basis points to the Companys consolidated same store sales calculation for the 26 weeks ended July 28, 2012, compared to 56 basis points for the 26 weeks ended July 30, 2011.

Gross profit increased approximately 15% to $842.4 million for the current period from $731.5 million for the 26 weeks ended July 30, 2011. The 76 basis point increase is due primarily to a 77 basis point decrease in fixed occupancy costs resulting primarily from the leverage on the increase in sales compared to last years period. Every 10 basis point change in merchandise margin would have impacted the earnings before income taxes for the current quarter by approximately $2.7 million.

Read the The complete Report

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