PITTSBURGH (BRAIN) — Dick's Sporting Goods has reported a slight increase in net sales for the second quarter 2018, which ended Aug. 4. Sales for the quarter were up 1 percent over the same period last year, to $2.18 billion. The company reported consolidated net income of $119.4 million for the quarter, up from $112.4 million reported in 2017.
Consolidated same-store sales decreased 4 percent in the second quarter over the same period last year (based on an adjusted calendar due to a 53rd week in 2017). The company also held 6.4 percent less inventory at the end of the second quarter compared with the same time frame in 2017.
Dick's CEO Edward Stack attributed the larger than projected decrease partly to the company's decision to cease sales of assault rifles earlier this year, and to Under Armour's recent move to expand its distribution to more lower-priced retailers.
But Dick's e-commerce sales continue to increase and were up 12 percent, comprising 11 percent of the company's total net sales compared with 9 percent during the second quarter in 2017.
"We delivered double digit growth in e-commerce, private brands, and athletic apparel excluding Under Armour, however, as expected, sales were impacted by the strategic decisions we made regarding the slow growth, low margin hunt and electronics businesses, which accounted for nearly half of our comp decline," Stack said. "In addition, we experienced continued significant declines in Under Armour sales as a result of their decision to expand distribution. We are very confident our sales trajectory will improve next year as these headwinds are expected to subside."
Dick's reported a consolidated net income for the 26 weeks ended August 4 of $179.5 million, up from $170.6 million in 2017. Net sales are up 2.6 percent to just over $4 billion for the year, but consolidated same-store sales are down 3.3 percent over the same period in 2017. The company anticipates same-store sales will decline 3 to 4 percent on a 52-week comparative basis, compared to a decline of 0.3 percent in 2017.
Dick's continues to invest in omnichannel development and also opened five new Dick's Sporting Goods stores during the second quarter. The company currently operates 729 Dick's stores in 47 states, and expects to open 19 stores and relocate four in 2018. The retailer sells bikes from GT, Schwinn, Mongoose, Strider, Pacific Cycles and others, as well as cycling parts, apparel and accessories.
