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Dick’s: Sales up nearly 8 percent in second quarter

Published August 16, 2016
E-commerce business, up 26 percent, drives same-store growth.

PITTSBURGH (BRAIN) — Dick's Sporting Goods reported Tuesday that net sales for the second quarter were up 7.9 percent over the same period last year, reaching approximately $2 billion. Same-store sales were up 2.8 percent, much higher than what Dick’s had forecasted. The company expected a decline of 1 to 4 percent.

The company reported growth across several categories, but said that increased sales of camping equipment contributed to the sales growth. It also acknowledged that the recent liquidation of rival sporting goods stores was a factor.

“We are pleased with our second quarter results, particularly in light of the liquidation activity in the market,” said Edward W. Stack, chairman and CEO, referring to rivals Sport Chalet and Sports Authority, which held going out of business sales. “Looking ahead, we are focused on capturing the displaced market share and remain confident in our ability to strengthen our leadership position." 

Dick’s same-store growth was primarily driven by the company’s e-commerce sales, which were up 26 percent. Online sales accounted for about 8.5 percent of its net sales. The company reported a net income of $9.4 million, or 82 cents per diluted share, which was up from 77 cents over the same period in 2015.

Dick’s plans to open 25 new Dick’s stores, seven Field & Stream and two Golf Galaxy stores in the third quarter. Fifteen of the planned Dick’s stores will open in new markets, including Houston, where it will open six locations.

Since Dick’s acquired several leases from Sports Authority’s bankruptcy auction earlier this year, some stores will open in former Sports Authority locations. The leases are located primarily in California and Florida.

At the end of the second quarter, Dick’s operated 645 sporting goods stores across the country.

Dick's sells bikes from Diamondback, Nishiki and GT, as well as cycling apparel, helmets, accessories and car racks, but does not break out its cycling business in earnings reports.

Topics associated with this article: Earnings/Financial Reports

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