DICK'S Sporting Goods, Inc., the largest U.S. based full-line omni-channel sporting goods retailer, reported sales and earnings results for the first quarter ended May 3, 2014.
-Consolidated non-GAAP earnings per diluted share increased 4% to $0.50 in the first quarter of 2014 as compared to consolidated non-GAAP earnings per diluted share of $0.48 in the first quarter of 2013
- Consolidated same store sales for the first quarter increased 1.5%
- Significant weakness in golf and hunting overshadowed strength in athletic apparel, athletic footwear and team sports and a continued acceleration of the eCommerce business
- Company lowers full year earnings outlook to reflect continuation of negative trends in golf and hunting
- Company repurchased $25.0 million of common stock and also declared a $0.125 per share quarterly dividend
First Quarter Results
Net sales for the first quarter of 2014 increased 7.9% to $1.4 billion. Consolidated same store sales increased 1.5%, compared to the Company's guidance of an approximate 3 to 4% increase. First quarter 2013 consolidated same store sales decreased 3.8%, adjusted for the shifted retail calendar due to the 53rd week in 2012. Same store sales in the first quarter of 2014 for DICK'S Sporting Goods increased 2.3%, while Golf Galaxy decreased 10.4%.
The Company reported consolidated non-GAAP net income for the first quarter ended May 3, 2014 of $61.3 million, or $0.50 per diluted share, excluding a gain on the sale of an asset, compared to the Company's expectations provided on March 11, 2014 of $0.51 to 0.53 per diluted share. For the first quarter ended May 4, 2013, the Company reported consolidated non-GAAP net income of $60.5 million, or $0.48 per diluted share.
On a GAAP basis, the Company reported consolidated net income for the first quarter ended May 3, 2014 of $70.0 million, or $0.57 per diluted share. For the first quarter ended May 4, 2013, the Company reported consolidated net income of $64.8 million, or $0.52 per diluted share. The GAAP to non-GAAP reconciliations are included in a table later in the release under the heading "Non-GAAP Net Income and Earnings Per Share Reconciliations."
"Our difficulties this quarter were isolated to two categories: golf and hunting," said Edward W. Stack, Chairman and CEO. "After a very challenging first quarter in golf last year, we expected some further headwinds and only modest improvement, but instead we saw a continued significant decline. In the case of hunting, we planned the business down based on last year's catalysts, but it was even weaker than expected."