PITTSBURGH (BRAIN) — Temporary store closures because of the COVID-19 pandemic led to Dick’s Sporting Goods’ net sales dropping 30.6% in the first quarter year-over-year for the quarter ending May 2.
Net sales decreased to $1.33 billion, and consolidated same-store sales slipped 29.5%. Stores were closed March 18, and some began reopening a month ago.
The company reported a consolidated net loss for the first quarter, or $1.71 per diluted share. By supporting employees as well as impacts from temporary closures, Dick’s had about $62 million of pre-tax expenses, or $0.50 per diluted share, including $34 million of employee compensation and safety costs and $28 million of inventory write-downs.
Dick’s reported consolidated net income for the first quarter of $57.5 million, or $0.61 per diluted share.
On a non-GAAP basis, Dick's reported consolidated net income for the first quarter of $58.4 million, or $0.62 per diluted share. First-quarter 2019 non-GAAP results exclude a non-cash asset impairment and the settlement of a litigation contingency.
"Although the business environment of 2020 remains uncertain, Dick’s Sporting Goods is in a position of strength,” said Edward W. Stack, chairman and CEO. “We believe coming out of the current crisis, health and fitness will become even more important to the consumer. As the leader in the sporting goods retail sector, our relationships with key brands have never been stronger and we are in a great place to support this demand."
E-commerce sales jumped 110% year-over-year, boosted because of stay-at-home orders and curbside contactless pickup. E-commerce was about 39% of the net sales, compared to about 13% during the first quarter of 2019. After stores were closed to foot traffic, e-commerce grew 210%.
Dick’s announced on March 19 that it withdrew its fiscal 2020 outlook and did not provide an updated outlook. The company is traded on the New York Stock Exchange under the DKS symbol.
More information: DKS stock quote at Marketwatch.com.
