Cision PR Newswire

Third Quarter Operating Results

(dollars in millions, except per share data)

13 Weeks Ended

Change ⁽¹⁾

November 2, 2024

October 28, 2023

Net sales ⁽²⁾

$             3,057

$              3,042

$              15

0.5 %

Comparable sales ^{(2) (3)}

4.2 %

1.9 %

Income before income taxes (% of net sales) ⁽⁴⁾

9.7 %

8.8 %

89 bps

Non-GAAP income before income taxes (% of net sales) ^{(4) (5)}

9.7 %

10.6 %

Net income

$             27

13 %

Non-GAAP net income ⁽⁵⁾

$                228

$                 240

$            (12)

(5) %

Earnings per diluted share ⁽²⁾

$                2.75

$                2.39

$         0.36

15 %

Non-GAAP earnings per diluted share ^{(2) (5)}

$                2.75

$                2.85

$        (0.10)

(4) %

Year-to-Date Operating Results

(dollars in millions, except per share data)

39 Weeks Ended

Change ⁽¹⁾

November 2, 2024

October 28, 2023

Net sales ⁽²⁾

$             9,549

$              9,108

$           441

4.8 %

Comparable sales ^{(2) (3)}

4.7 %

2.5 %

Income before income taxes (% of net sales) ⁽⁴⁾

11.8 %

10.1 %

162 bps

Non-GAAP income before income taxes (% of net sales) ^{(4) (5)}

11.8 %

10.7 %

104 bps

Effective tax rate

22.9 %

18.7 %

414 bps

Net income

$                865

$                 750

$            115

15 %

Non-GAAP net income ⁽⁵⁾

$                865

$                 789

$             76

10 %

Earnings per diluted share ⁽²⁾

$             10.43

$                8.63

$          1.80

21 %

Non-GAAP earnings per diluted share ^{(2) (5)}

$             10.43

$                9.08

$          1.35

15 %

Balance Sheet

(in millions)

As of

November 2,
2024

As of

October 28,
2023

$

Change ⁽¹⁾

%

Change ⁽¹⁾

Cash and cash equivalents

$                 1,459

$                 1,406

$             52

4 %

Inventories, net

$                3,726

$                3,283

$          443

13 %

Total debt ⁽⁶⁾

$                 1,484

$                 1,483

$                1

— %

Capital Allocation

(in millions)

$

Change ⁽¹⁾

%

Change ⁽¹⁾

November 2,
2024

October 28,
2023

Share repurchases ⁽⁷⁾

$                   170

$                  649

$         (478)

(74) %

Dividends paid ⁽⁸⁾

$                   273

$                   271

$               3

1 %

Gross capital expenditures

$                  566

$                   410

$           156

38 %

$                   511

$                  369

$           142

39 %

^1.

Column may not recalculate due to rounding.

^2.

Due to the 53^rd week in fiscal 2023, there is a one-week shift in the fiscal 2024 calendar compared to the prior year, which unfavorably impacted net sales comparisons for the third quarter by approximately $105 million, or approximately $0.35 per diluted share, and favorably impacted the year-to-date period by approximately $35 million, or approximately $0.10 per diluted share. Comparable sales for fiscal 2024 are calculated by shifting the prior year period by one week to compare similar calendar weeks.

^3.

Beginning in fiscal 2024, we revised our method for calculating comparable sales to include GameChanger revenue. Prior year information has been revised to reflect this change for comparability purposes. See additional details as furnished in Exhibit 99.2 of the Company's Current Report on Form 8-K, filed with the SEC on March 14, 2024.

^4.

Also referred to by management as earnings before income taxes ("EBT").

^5.

In the fiscal 2024 period, there were no non-GAAP adjustments to reported EBT margin, net income or earnings per diluted share. The fiscal 2023 period reflects non-GAAP adjustments for charges from the Company's business optimization, which was completed in 2023 to better align its talent, organization design and spending in support of its most critical strategies. For additional information, see GAAP to non-GAAP reconciliations included in tables later in the release under the heading "GAAP to Non-GAAP Reconciliations."

^6.

The Company had no outstanding borrowings under its revolving credit facility in 2024 and 2023.

^7.

During the 39 weeks ended November 2, 2024, the Company repurchased 0.8 million shares of its common stock under its share repurchase program at an average price of $203.98 per share, for a total cost of $170.3 million. The Company has $609.3 million remaining under its authorization as of November 2, 2024.

^8.

The Company declared and paid quarterly dividends of $1.10 per share in fiscal 2024 and $1.00 per share in fiscal 2023.

Earnings per diluted share

●        $13.65 to 13.95

•         Based on approximately 83 million diluted shares outstanding

•         Based on an effective tax rate of approximately 23%

Net sales

●       $13.2 billion to 13.3 billion

Comparable sales

●       Growth of 3.6% to 4.2%

Capital expenditures

●        Approximately $900 million on a gross basis

●        Approximately $800 million on a net basis

39 Weeks Ended November 2, 2024

39 Weeks Ended October 28, 2023

DICK'S
Sporting
Goods

Specialty
 Concept Stores
⁽¹⁾

Total ⁽²⁾

DICK'S
Sporting
Goods

Specialty
Concept Stores
⁽¹⁾

Total ⁽²⁾

Beginning stores

724

131

855

728

125

853

Q1 New stores

1

3

4

—

—

—

Q2 New stores

2

5

7

—

1

1

Q3 New stores

2

1

3

1

9

Stores acquired

—

—

—

—

12

12

Closed stores

2

3

5

4

3

7

Ending stores

727 ⁽³⁾

137

864

725

144

869

Relocated stores

8

3

11

16

2

18

 Square Footage:

 (in millions)

DICK'S Sporting Goods

Specialty Concept
Stores ⁽¹⁾

Total ⁽²⁾⁽⁴⁾

Q1 2023

39.2

3.4

42.6

Q2 2023

39.0

3.4

42.4

Q3 2023

39.2

3.6

42.7

Q4 2023

39.3

3.4

42.7

Q1 2024

39.4

3.5

42.9

Q2 2024

39.6

3.7

43.2

Q3 2024

39.9

3.7

43.5

⁽¹⁾

Includes our Golf Galaxy, Public Lands, Going Going Gone! and other specialty concept stores. As of November 2, 2024, we operated 109 Golf Galaxy stores, 8 Public Lands stores, and 20 Going Going Gone! stores. As of October 28, 2023, we operated 104 Golf Galaxy stores, 7 Public Lands stores, 17 Going Going Gone! stores and other specialty concept stores. In some markets, we operate DICK'S Sporting Goods stores adjacent to our specialty concept stores on the same property with a pass-through for our athletes. We refer to this format as a "combo store" and include combo store openings within both the DICK'S Sporting Goods and specialty concept store reconciliations, as applicable. As of November 2, 2024, the Company operated 19 combo stores.

⁽²⁾

Excludes temporary value chain locations, of which the Company operated 30 and 41 as of November 2, 2024 and October 28, 2023, respectively.

⁽³⁾

As of November 2, 2024, includes 17 DICK'S House of Sport stores, with five new openings during fiscal 2024, three of which were relocated and one of which was remodeled from prior store locations. As of November 2, 2024, includes 22 DICK'S Field House stores, with eleven new openings during fiscal 2024, four of which were relocated and three of which were remodeled from prior store locations.

⁽⁴⁾

Column may not recalculate due to rounding.

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)

13 Weeks Ended

November 2,
2024

% of

Sales

October 28,
2023

% of

Sales

Net sales

$            3,057,181

100.00 %

$          3,042,405

100.00 %

Cost of goods sold, including occupancy and
     distribution costs

1,963,737

64.23

1,980,942

65.11

GROSS PROFIT

1,093,444

35.77

1,061,463

34.89

Selling, general and administrative expenses

790,621

25.86

768,188

25.25

Pre-opening expenses

16,779

0.55

20,331

0.67

INCOME FROM OPERATIONS

286,044

9.36

272,944

8.97

Interest expense

12,947

0.42

14,382

0.47

Other (income) expense

(23,976)

(0.78)

(10,084)

(0.33)

INCOME BEFORE INCOME TAXES

297,073

9.72

268,646

8.83

Provision for income taxes

69,260

2.27

67,540

2.22

NET INCOME

$               227,813

7.45 %

$               201,106

6.61 %

EARNINGS PER COMMON SHARE:

Basic

$                     2.83

$                     2.46

Diluted

$                     2.75

$                     2.39

WEIGHTED AVERAGE COMMON SHARES
     OUTSTANDING:

Basic

80,404

81,772

Diluted

82,776

84,291

Beginning in 2024, the Company included grand opening advertising costs within pre-opening expenses, which were historically included within selling, general and administrative expenses. Prior period amounts have been reclassified to conform to our current year presentation.

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)

39 Weeks Ended

November 2,
2024

% of

Sales

October 28,
2023

% of

Sales ⁽¹⁾

Net sales

$          9,549,200

100.00 %

$           9,108,228

100.00 %

Cost of goods sold, including occupancy and
     distribution costs

6,084,762

63.72

5,908,672

64.87

GROSS PROFIT

3,464,438

36.28

3,199,556

35.13

Selling, general and administrative expenses

2,330,692

24.41

2,226,820

24.45

Pre-opening expenses

46,806

0.49

62,408

0.69

INCOME FROM OPERATIONS

1,086,940

11.38

910,328

9.99

Interest expense

40,304

0.42

43,809

0.48

Other (income) expense

(75,124)

(0.79)

(56,288)

(0.62)

INCOME BEFORE INCOME TAXES

1,121,760

11.75

922,807

10.13

Provision for income taxes

256,422

2.69

172,721

1.90

NET INCOME

$              865,338

9.06 %

$              750,086

8.24 %

EARNINGS PER COMMON SHARE:

Basic

$                   10.75

$                     9.04

Diluted

$                   10.43

$                     8.63

WEIGHTED AVERAGE COMMON SHARES
      OUTSTANDING:

Basic

80,473

82,995

Diluted

82,979

86,913

⁽¹⁾ Column does not add due to rounding

Beginning in 2024, the Company included grand opening advertising costs within pre-opening expenses, which were historically included within selling, general and administrative expenses. Prior period amounts have been reclassified to conform to our current year presentation.

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - UNAUDITED

(In thousands)

November 2,
2024

October 28,
2023

February 3,
2024

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$             1,458,655

$             1,406,214

$             1,801,220

Accounts receivable, net

217,863

140,791

114,877

Income taxes receivable

7,806

9,118

4,108

Inventories, net

3,725,912

3,282,911

2,848,797

Prepaid expenses and other current assets

125,723

104,963

121,047

Total current assets

5,535,959

4,943,997

4,890,049

Property and equipment, net

1,958,017

1,569,703

1,638,161

Operating lease assets

2,382,697

2,243,025

2,257,482

Intangible assets, net

56,472

56,754

56,663

Goodwill

245,857

245,857

245,857

Deferred income taxes

42,031

30,817

37,846

Other assets

230,778

192,173

185,694

TOTAL ASSETS

$            10,451,811

$            9,282,326

$              9,311,752

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$             1,699,957

$             1,630,402

$             1,288,728

Accrued expenses

665,678

550,006

551,369

Operating lease liabilities

517,968

485,033

492,856

Income taxes payable

11,241

42,010

54,508

Deferred revenue and other liabilities

322,888

281,943

364,933

Total current liabilities

3,217,732

2,989,394

2,752,394

LONG-TERM LIABILITIES:

Revolving credit borrowings

—

—

—

Senior notes

1,483,975

1,483,026

1,483,260

Long-term operating lease liabilities

2,487,303

2,264,941

2,287,714

Other long-term liabilities

199,416

160,261

171,103

Total long-term liabilities

4,170,694

3,908,228

3,942,077

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:

Common stock

569

568

568

Class B common stock

236

236

236

Additional paid-in capital

1,470,946

1,430,802

1,448,855

Retained earnings

6,183,406

5,374,573

5,588,914

Accumulated other comprehensive loss

(519)

(462)

(329)

Treasury stock, at cost

(4,591,253)

(4,421,013)

(4,420,963)

Total stockholders' equity

3,063,385

2,384,704

2,617,281

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$            10,451,811

$            9,282,326

$              9,311,752

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(In thousands)

39 Weeks Ended

November 2,
2024

October 28,
2023

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$            865,338

$            750,086

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

Depreciation and amortization

290,360

271,368

Amortization of deferred financing fees and debt discount

1,747

1,786

Deferred income taxes

(4,185)

10,372

Stock-based compensation

50,716

39,552

Other, net

(6,795)

9,182

Changes in assets and liabilities:

Accounts receivable

(25,055)

(25,831)

Inventories

(877,115)

(415,291)

Prepaid expenses and other assets

(7,839)

(2,253)

Accounts payable

404,685

256,141

Accrued expenses

62,024

(21,473)

Income taxes payable / receivable

(48,518)

11,659

Construction allowances provided by landlords

54,445

40,624

Deferred revenue and other liabilities

(24,586)

(56,835)

Operating lease assets and liabilities

(54,915)

(104,373)

Net cash provided by operating activities

680,307

764,714

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

(565,569)

(409,527)

Proceeds from sale of other assets

11,872

27,500

Other investing activities

(3,548)

(51,298)

Net cash used in investing activities

(557,245)

(433,325)

CASH FLOWS FROM FINANCING ACTIVITIES:

Principal paid in connection with exchange of convertible senior notes

—

(137)

Payments on finance lease obligations

—

(609)

Proceeds from exercise of stock options

13,277

13,924

Minimum tax withholding requirements

(41,893)

(97,956)

Cash paid for treasury stock

(170,268)

(648,554)

Cash dividends paid to stockholders

(273,097)

(270,596)

Increase in bank overdraft

6,544

154,577

Net cash used in financing activities

(465,437)

(849,351)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

(190)

(210)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(342,565)

(518,172)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

1,801,220

1,924,386

CASH AND CASH EQUIVALENTS, END OF PERIOD

$         1,458,655

$         1,406,214

DICK'S SPORTING GOODS, INC.

GAAP to NON-GAAP RECONCILIATIONS - UNAUDITED

Non-GAAP Net Income and Earnings Per Share Reconciliations

(dollars in thousands, except per share amounts)

13 Weeks Ended November 2, 2024

Selling, general
and
administrative
expenses

Other
(income)
expense

Income
before
income taxes

Net income

Earnings per
diluted share

GAAP Basis

$                790,621

$       (23,976)

$       297,073

$        227,813

$                  2.75

% of Net Sales

25.86 %

(0.78) %

9.72 %

7.45 %

Deferred compensation plan
     adjustments ⁽¹⁾

(3,476)

3,476

—

—

Non-GAAP Basis

$                 787,145

$       (20,500)

$       297,073

$        227,813

$                  2.75

% of Net Sales

25.75 %

(0.67) %

9.72 %

7.45 %

⁽¹⁾              Includes non-cash changes in fair value of employee deferred compensation plan investments held in rabbi trusts.

39 Weeks Ended November 2, 2024

Selling, general
and
administrative
expenses

Other
(income)
expense

Income
before
income taxes

Net income

Earnings per
diluted share

GAAP Basis

$            2,330,692

$        (75,124)

$     1,121,760

$       865,338

$                10.43

% of Net Sales

24.41 %

(0.79) %

11.75 %

9.06 %

Deferred compensation plan
     adjustments ⁽¹⁾

(17,622)

17,622

—

—

Non-GAAP Basis

$             2,313,070

$       (57,502)

$     1,121,760

$       865,338

$                10.43

% of Net Sales

24.22 %

(0.60) %

11.75 %

9.06 %

⁽¹⁾              Includes non-cash changes in fair value of employee deferred compensation plan investments held in rabbi trusts.

13 Weeks Ended October 28, 2023

Gross profit

Selling, general
and
administrative
expenses

Other
(income)
expense

Income
before
income taxes

Net income ⁽³⁾

Earnings per
diluted share

GAAP Basis

$  1,061,463

$            768,188

$   (10,084)

$  268,646

$  201,106

$             2.39

% of Net Sales

34.89 %

25.25 %

(0.33) %

8.83 %

6.61 %

Business optimization
     charges ⁽¹⁾

6,323

(46,174)

—

52,497

38,848

Deferred compensation
     plan adjustments ⁽²⁾

—

12,046

(12,046)

—

—

Non-GAAP Basis

$  1,067,786

$           734,060

$    (22,130)

$    321,143

$ 239,954

$             2.85

% of Net Sales

35.10 %

24.13 %

(0.73) %

10.56 %

7.89 %

⁽¹⁾              Included $23.3 million of severance-related costs, $22.9 million of non-cash impairments of store and intangible assets and a $6.3 million write-down of inventory.

⁽²⁾              Included non-cash changes in fair value of employee deferred compensation plan investments held in rabbi trusts.

⁽³⁾              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 28, 2023

Gross profit

Selling, general
and
administrative
expenses

Other
(income)
expense

Income
before
income taxes

Net income ⁽³⁾

Earnings per
diluted share

GAAP Basis

$  3,199,556

$        2,226,820

$   (56,288)

$   922,807

$ 750,086

$             8.63

% of Net Sales

35.13 %

24.45 %

(0.62) %

10.13 %

8.24 %

Business optimization
     charges ⁽¹⁾

6,323

(46,174)

—

52,497

38,848

Deferred compensation
     plan adjustments ⁽²⁾

—

2,137

(2,137)

—

—

Non-GAAP Basis

$  3,205,879

$         2,182,783

$   (58,425)

$  975,304

$ 788,934

$             9.08

% of Net Sales

35.20 %

23.96 %

(0.64) %

10.71 %

8.66 %

⁽¹⁾              Included $23.3 million of severance-related costs, $22.9 million of non-cash impairments of store and intangible assets and a $6.3 million write-down of inventory.

⁽²⁾              Included non-cash changes in fair value of employee deferred compensation plan investments held in rabbi trusts.

⁽³⁾              The provision for income taxes for non-GAAP adjustments was calculated at 26% which approximated the Company's blended tax rate.

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 construction allowances. 

39 Weeks Ended

November 2,
2024

Gross capital expenditures

$               (565,569)

$               (409,527)

Construction allowances provided by landlords

54,445

40,624

Net capital expenditures

$                   (511,124)

$               (368,903)