Dick's Sporting generates higher profits
Dick's Sporting Goods, Inc. reported sales and earnings results for the fourth quarter and full year ended January 30, 2010.
• Fourth Quarter 2009 Same Store Sales Increased 2.5%
• Fourth Quarter 2009 Earnings Per Share Increased 4% Over Fourth Quarter 2008 Non-GAAP Earnings Per Share
• Company Ended 2009 Without Any Outstanding Borrowings Under Its Credit Facility and Increased Its Cash Position from $75 million to $226 million year over year
Fourth Quarter Results
The Company reported consolidated net income for the fourth quarter ended January 30, 2010 of $67.4 million, or $0.56 per diluted share (GAAP and non-GAAP). For the fourth quarter ended January 31, 2009, the Company reported consolidated non-GAAP net income of $62.2 million, or $0.54 per diluted share. Non-GAAP earnings exclude a non-cash impairment charge and merger and integration costs. On a GAAP basis, the Company reported a consolidated net loss for the fourth quarter ended January 31, 2009 of $105.6 million, or $0.94 per diluted share.
Net sales for the fourth quarter of 2009 increased by 10.7% to $1.3 billion due primarily to a 2.5% increase in consolidated comparable store sales, the opening of new stores and the addition of e-commerce sales. The 2.5% consolidated same store sales increase consisted of a 2.4% increase in Dick's Sporting Goods stores and a 5.9% increase in Golf Galaxy stores.
"Despite the difficult economic environment of 2009, our associates successfully generated more sales, effectively managed inventory levels, and continued to exercise financial discipline. As a result, we generated higher profits, leveraged expenses, further strengthened our balance sheet and believe we gained market share in 2009," said Edward W. Stack, Chairman and CEO. "Looking to 2010, we expect to generate double-digit earnings growth and positive operating cash flow while further investing in the long-term growth of the company."
In 2009, the Company opened 24 new Dick's Sporting Goods stores, relocated one Dick's Sporting Goods store, closed one Dick's Sporting Goods store, opened one new Golf Galaxy store, converted the Golf Shop to a Golf Galaxy store, closed two Chick's Sporting Goods stores and converted the remaining Chick's Sporting Goods stores to Dick's Sporting Goods stores.
As of January 30, 2010, the Company operated 419 Dick's Sporting Goods stores in 40 states, with approximately 23.3 million square feet and 91 Golf Galaxy stores in 31 states, with approximately 1.5 million square feet.
The Company ended the fiscal year with a strong balance sheet, including $225.6 million in cash and cash equivalents and no outstanding borrowings under its $440 million Credit Agreement. In the first quarter of 2009, the Company repaid $172.5 million for its senior convertible notes and during fiscal 2009 increased its net cash position by $324 million. At the end of 2009, the balance sheet included financing lease obligations of $131 million, which reflects the accounting for the Company's new headquarters, now referred to as its Store Support Center. Excluding inventory related to its e-commerce business, inventory per square foot declined 0.8% at the end of the fiscal 2009 compared to the end of fiscal 2008.
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Dick's Sporting Goods Inc