Second Quarter Results

The Company reported consolidated non-GAAP net income for the second quarter ended July 28, 2012 of $81.3 million, or $0.65 per diluted share, excluding a $0.22 per diluted share impact of an impairment charge related to the Company's investment in JJB Sports.

The second quarter non-GAAP earnings per diluted share exceeded the Company's earnings expectations provided on May 15, 2012 of $0.62 to 0.63 per diluted share. For the second quarter ended July 30, 2011, the Company reported consolidated non-GAAP net income of $65.1 million, or $0.52 per diluted share, excluding a $0.07 per diluted share impact from a gain on sale of investment.  

On a GAAP basis, the Company reported consolidated net income for the second quarter ended July 28, 2012 of $53.7 million, or $0.43 per diluted share. For the second quarter ended July 30, 2011, the Company reported consolidated net income of $73.8 million, or $0.59 per diluted share.

Net sales for the second quarter of 2012 increased by 10.0% to $1.4 billion due primarily to a 3.8% increase in consolidated same store sales and the opening of new stores. The 3.8% consolidated same store sales increase consisted of a 2.9% increase at Dick's Sporting Goods stores, a 4.4% increase at Golf Galaxy and a 34.6% increase in the eCommerce business.

"We have delivered another exceptional quarter, and are on track to post strong full-year performance for 2012," said Edward W. Stack, Chairman and CEO. "We plan to drive continued long-term profitable growth by investing in new stores, developing our omni-channel capabilities and increasing our margins through inventory management, an emphasis on private brands, and the continued shift of our product mix to higher margin merchandise categories."

New Stores

In the second quarter, the Company opened four Dick's Sporting Goods stores.

As of July 28, 2012, the Company operated 490 Dick's Sporting Goods stores in 44 states, with approximately 26.7 million square feet and 81 Golf Galaxy stores in 30 states, with approximately 1.3 million square feet.

Balance Sheet

The Company ended the second quarter of 2012 with $350 million in cash and cash equivalents and did not have any outstanding borrowings under its $500 million revolving credit facility.

At the end of the second quarter of 2011, the Company had $626 million in cash and cash equivalents and did not have any outstanding borrowings under its credit facility. Over the course of the past twelve months, the Company has utilized capital to fund its share repurchase program, initiate a dividend program, purchase its store support center, invest in JJB Sports, acquire intellectual property rights to the Top-Flite brand, and build a distribution center.

The inventory per square foot was 4.2% higher at the end of the second quarter of 2012 as compared to the end of the second quarter of 2011.

Click here to read more details: 

Dick's Sporting Goods Inc