PITTSBURGH (BRAIN) — Dick’s Sporting Goods, Inc. reported a sales increase of 8.8 percent in its first quarter, which ended May 2. The company's net sales were $1.6 billion, or $0.53 per diluted share; same store sales were up 1.8 percent from the same time in 2014.
Consolidated net income was $63.3 million for the period, up from $61.3 million in the first quarter of 2014. The same-store increase is for Dick's Sporting Goods stores, excluding the company's Golf Galaxy, Field & Stream and True Runner speciality stores. The Golf Galaxy business was a sore spot for Dick's - sales were down there 11 percent on a same-store basis.
Dick's is re-organizing its golf business and in the quarter it paid severance charges of $3.7 million resulting from the elimination of golf staff in Dick's stores and consolidation of Dick's golf and Golf Galaxy corporate and administrative functions. It also took a $2.4 million write-down of excess golf inventories.
"We are pleased with our first quarter results as we generated earnings at the high end of our expectations, despite a slow start to the spring season," said Edward Stack, Dick’s chairman and CEO. "I am confident in our full-year outlook as we remain focused on growing our business through driving store productivity, adding new stores in new and under-penetrated markets, expanding and controlling our e-commerce business, and further developing our Field & Stream specialty concept."
First-quarter online sales were also up, accounting for 8.5 percent of total sales compared to 7 percent during the first quarter of 2014.
The company opened nine new Dick’s Sporting Goods stores and relocated one in the first quarter. It also opened one new Field & Stream store.
As of May 2, the company operated 612 Dick's stores in 46 states, plus 92 specialty stores, which include Golf Galaxy, True Runner and Field & Stream stores. The company expects to open 45 new Dick’s stores in 2015, with seven slated to open in the second quarter.
Dick's sells bikes from such brands as Diamondback, Nishiki and Schwinn, as well as cycling apparel, helmets, accessories and car racks, but generally does not break out its cycling business in earnings reports.
