Dick's Sporting Goods keeps online momentum
The nation's leading sporting goods retailer is increasing its full year profit forecast after improved omnichannel execution and assortment optimization efforts yielded better than expected first quarter results.
E-commerce sales as a percent of total sales reached 11% during the first quarter. Net sales for the first quarter of 2018 increased 4.6% to approximately $1.91 billion. Chairman and CEO Edward Stack said new products, strength in private brands and a leaner product assortment led to a healthier business.
"Our strong first quarter earnings reflect improved execution against our merchandising strategy, which resulted in higher merchandise margins. Product newness, strength in our private brands and a more refined assortment led to a much healthier business, with fewer promotions and cleaner inventory throughout the quarter. We believe these benefits will continue as we further optimize our assortments," said Edward W. Stack, Chairman and Chief Executive Officer. "We are also continuing to see the results of investments in our digital experience, and we will continue to invest as we build the best omni-channel experience for all athletes."
Adjusted for the calendar shift due to the 53rd week in 2017, consolidated same store sales decreased 2.5% on a 13-week to 13-week comparable basis. Based on an unshifted calendar, consolidated same store sales for the first quarter decreased 0.9%. Consolidated same store sales were impacted by a continued deceleration in hunt and electronics sales, as well as colder spring weather, which resulted in a delayed start to key outdoor sports and activities. First quarter 2017 consolidated same store sales increased 2.4%.
For the period ended May 5, Dick's Sporting Goods Inc. earned $60.1 million, or 59 cents per share. A year earlier the Coraopolis, Pennsylvania-based company earned $58.2 million, or 52 cents per share.
Revenue increased to $1.91 billion from $1.83 billion, topping the $1.88 billion that Wall Street expected. Online sales jumped 24 percent.
"This is an exciting time for our company as we focus on driving executional excellence, delivering an improved shopping experience and differentiating ourselves to create a premier omni-channel experience," added Lauren R. Hobart, President of DICK'S Sporting Goods. "We continue to see significant opportunity to drive competitive marketplace advantage and win with our athletes longer-term."
Dick's now foresees full-year earnings between $2.92 and $3.12 per share. Its prior guidance was for earnings in a range of $2.80 to $3 per share.