Press Releases

DICK’S Sporting Goods Reports Second Quarter Results; Raises Full Year Guidance

  • Comparable store sales declined 5.1%
  • Net sales of $3.1 billion increased 38% versus the second quarter of 2019
  • Delivered earnings per diluted share of $3.25 and non-GAAP earnings per diluted share of $3.68, each reflecting pre-tax income as a percentage of net sales of 13.7%
  • Raises low end of full year 2022 comparable store sales guidance to a range of negative 6% to negative 2%, up from negative 8% to negative 2% previously
  • Raises full year 2022 earnings per diluted share guidance to $8.85 to 10.55, up from $7.95 to 10.15 previously; Raises full year 2022 non-GAAP earnings per diluted share guidance to $10.00 to 12.00, up from $9.15 to 11.70 previously

“Our second quarter performance demonstrates the strength of our core strategies and the foundational improvements we have made across our business over the past five years. In fact, we delivered approximately the same EBT in Q2 as we did in all of fiscal 2019. The state of our industry is strong, and we remain in a great lane. DICK’S is the clear market leader, and as a result of our transformation, we are well-positioned to extend our lead and deliver long-term sales and earnings growth.” 

 Ed Stack, Executive Chairman


“We are very pleased with our second quarter results, and with our sales up 38% versus Q2 2019, the DICK’S Sporting Goods consumer has held up quite well. Our inventory is healthy and well-positioned, and we are excited about our assortment for the back-to-school season. We are raising our full year 2022 outlook, which continues to incorporate an appropriate level of caution given today’s uncertain macroeconomic environment.”

Lauren Hobart, President and Chief Executive Officer



PITTSBURGH, Aug. 23, 2022 /PRNewswire/ — DICK’S Sporting Goods, Inc. (NYSE: DKS), the largest U.S. based full-line omni-channel sporting goods retailer, today reported sales and earnings results for the second quarter ended July 30, 2022.

 

Second Quarter Operating Results

(dollars in millions, except per share data)

13 Weeks Ended

Change (1)

July 30, 2022

July 31, 2021

Net sales

$             3,112.4

$            3,274.8

$    (162.4)

(5.0) %

Comparable store sales (2)

(5.1) %

20.2 %


Income before income taxes (% of net sales)

13.73 %

20.05 %

(632) bps

Non-GAAP income before income taxes (% of net sales) (3)

13.73 %

20.28 %

(655) bps

Net income

$                318.5

$                495.5

$     (177.0)

(35.7) %

Non-GAAP net income (3)

$                318.5

$                501.2

$     (182.7)

(36.4) %

Earnings per diluted share

$                  3.25

$                  4.53

$       (1.28)

(28.3) %

Non-GAAP earnings per diluted share (3)

$                  3.68

$                  5.08

$       (1.40)

(27.6) %

 

 

Year-to-Date Operating Results

(dollars in millions, except per share data)

26 Weeks Ended

Change (1)

July 30, 2022

July 31, 2021

Net sales

$            5,812.6

$            6,193.6

$    (380.9)

(6.2) %

Comparable store sales (2)

(6.6) %

52.2 %


Income before income taxes (% of net sales)

13.06 %

18.19 %

(513) bps

Non-GAAP income before income taxes (% of net sales) (3)

13.06 %

18.43 %

(537) bps

Net income

$                579.1

$                857.3

$    (278.2)

(32.5) %

Non-GAAP net income (3)

$                579.1

$                868.3

$    (289.3)

(33.3) %

Earnings per diluted share

$                  5.70

$                  7.96

$      (2.26)

(28.4) %

Non-GAAP earnings per diluted share (3)

$                  6.50

$                  8.89

$      (2.39)

(26.9) %



1.

Column may not recalculate due to rounding.

2.

Beginning in fiscal 2022, the Company revised its method for calculating comparable store sales by including relocated store locations. Prior year information was revised to reflect this change for comparability purposes. See additional details as furnished in Exhibit 99.2 of the Company’s Form 8-K, which was filed with the SEC on March 8, 2022.

3.

Non-GAAP adjustments to the fiscal periods presented relate to the Company’s Convertible Senior Notes, which the Company believes more closely represents the economics of the instrument upon future conversion. For additional information, see New Accounting Pronouncement later in the release and GAAP to non-GAAP reconciliations included in a table under the heading “GAAP to Non-GAAP Reconciliations.”

 

Balance Sheet

(dollars in millions)

As of

July 30, 2022

As of

July 31, 2021

$

Change (1)

% Change (1)


Cash and cash equivalents

$            1,895.5

$            2,236.7

$        (341.2)

(15.3) %


Inventories, net

$            2,996.0

$            2,011.0

$         984.9

49.0 %


Total debt (2)

$            1,850.4

$               433.5

$    1,416.9

326.9 %




1.

Column may not recalculate due to rounding.

2.

Fiscal 2022 includes debt with a carrying value of $1,481.9 million from the Company’s issuance of the Senior Notes during the fourth quarter of 2021. Fiscal 2022 and 2021 includes debt with a carrying value of $368.5 million and $433.5 million, respectively, from the Company’s issuance of the Convertible Senior Notes during fiscal 2020. The Company had no outstanding borrowings under its revolving credit facility in 2022 and 2021.

 

Capital Allocation

(dollars in millions)

26 Weeks Ended

$

Change (1)

% Change (1)

July 30, 2022

July 31, 2021

Share repurchases (2)

$              361.1

$               152.7

$       208.5

136.5 %

Dividends paid (3)

$                82.9

$                 64.2

$         18.7

29.1 %

Gross capital expenditures

$              167.7

$               167.7

$            —

— %

Net capital expenditures (4)

$              138.4

$               149.3

$        (10.9)

(7.3) %

 Principal paid in connection with exchange of Convertible Senior Notes (5)

$              200.0

$                    —

$      200.0




1.

Column may not recalculate due to rounding.

2.

During the 13 weeks ended, July 30, 2022, repurchased 3.9 million shares of its common stock at an average price of $80.84 per share, for a total cost of $318.9 million. For the 26 weeks ended July 30, 2022, repurchased common stock totaling $361.1 million under its share repurchase program, under which the Company has $1.5 billion remaining at July 30, 2022.

3.

In the 2022 and 2021 periods, declared and paid quarterly dividends of $0.4875 per share and $0.3625 per share, respectively.

4.

For additional information, the GAAP to non-GAAP reconciliations are included in a table later in the release under the heading “GAAP to Non-GAAP Reconciliations.”

5.

During the 26 weeks ended, July 30, 2022, exchanged $200 million aggregate principal amount of Convertible Senior Notes and unwound the corresponding portion of the convertible bond hedge and warrants for $200 million of cash and 3.5 million shares of our common stock.

Quarterly Dividend

On August 22, 2022, the Company’s Board of Directors authorized and declared a quarterly dividend in the amount of $0.4875 per share on the Company’s Common Stock and Class B Common Stock. The dividend is payable in cash on September 30, 2022 to stockholders of record at the close of business on September 9, 2022.

Full Year 2022 Outlook

The Company’s Full Year Outlook for 2022 is presented below: 

Metric

2022 Outlook

Earnings per diluted share

●  $8.85 to 10.55

○  Based on approximately 102 million diluted shares outstanding

○  Not dependent upon share repurchases beyond the $361 million executed through the end of Q2

●  $10.00 to 12.00 on a non-GAAP basis, which eliminates the impact of assumed share settlement of the Convertible Senior Notes

○  Based on approximately 88 million diluted shares outstanding

Comparable store sales

●  Negative 6% to negative 2%

Capital expenditures

●  $400 to 425 million on a gross basis

●  $340 to 365 million on a net basis

Conference Call Info 

The Company will host a conference call today at 10:00 a.m. Eastern Time to discuss the second quarter results. Investors will have the opportunity to listen to the earnings conference call over the internet through the Company’s website located at investors.DICKS.com. To listen to the live call, please go to the website at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live webcast, it will be archived on the Company’s website for approximately twelve months.

Non-GAAP Financial Measures

In addition to reporting the Company’s financial results in accordance with generally accepted accounting principles (“GAAP”), the Company reports certain financial results that differ from what is reported under GAAP. These non-GAAP financial measures include non-GAAP income before income taxes (percent of net sales), consolidated non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP diluted shares outstanding, and net capital expenditures, which management believes provides investors with useful supplemental information to evaluate the Company’s ongoing operations and to compare with past and future periods. Furthermore, management believes that adjustments related to the Convertible Senior Notes and convertible bond hedge provide a more complete view of the economics of the instruments upon future conversion. Management also uses these non-GAAP measures internally for forecasting, budgeting, and measuring its operating performance. These measures should be viewed as supplementing, and not as an alternative or substitute for, the Company’s financial results prepared in accordance with GAAP. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies. A reconciliation of the Company’s non-GAAP measures to the most directly comparable GAAP financial measures are provided below and on the Company’s website at investors.DICKS.com.

New Accounting Pronouncement

The Company adopted a new accounting pronouncement in the first quarter of 2022, which impacted the accounting treatment for convertible debt with cash conversion features, such as the Convertible Senior Notes. The standard required that the Company eliminate the non-cash debt discount and related interest expense from its Convertible Senior Notes, which decreased their annualized interest rate from 11.6% to 3.9%. The new standard also required earnings per diluted share to assume share conversion of the entire amount of shares underlying the Convertible Senior Notes as of the beginning of the period presented using the if-converted method. The Company adopted the standard under the modified retrospective approach and therefore, will not revise prior periods. The Company does not expect the net effect of these changes will materially impact its full year 2022 GAAP earnings per diluted share and is reflected in its fiscal 2022 outlook.

Forward-Looking Statements Involving Known and Unknown Risks and Uncertainties 

This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified as those that may predict, forecast, indicate or imply future results or performance and by forward-looking words such as “believe”, “anticipate”, “expect”, “estimate”, “predict”, “intend”, “plan”, “project”, “goal”, “will”, “will be”, “will continue”, “will result”, “could”, “may”, “might” or any variations of such words or other words with similar meanings. These statements are subject to risks and uncertainties and change based on various important factors, many of which may be beyond the Company’s control. The Company’s future performance and actual results may differ materially from those expressed or implied in such forward-looking statements. Forward-looking statements should not be relied upon by investors as a prediction of actual results. Forward-looking statements include statements regarding, among other things, the Company’s future performance, including 2022 outlook for earnings, sales, and capital expenditures; share repurchases and dividends; our belief that we are well-positioned to increase our market share and deliver long-term sales and earnings growth; the health and positioning of our inventory; and the expected impact of the new accounting pronouncement discussed in the preceding section.

Factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements include, but are not limited to: macroeconomic conditions, including inflationary pressures, rising fuel prices, the risk of recession, and supply chain and global labor market challenges, whether due to COVID-19, the conflict in Ukraine or otherwise, and the effectiveness of measures to mitigate such impact; the impact on our business, operations and financial results due to the duration and scope of COVID-19, including the impact due to disruptions in our or our vendors’ supply chains and due to restrictions imposed by federal, state, and local governments in response to increases in the number of COVID-19 cases in areas in which we operate (including but not limited to store closures); changes in consumer discretionary spending; changes in consumer demand or shopping patterns and the ability to identify new trends and have the right trending products in stores and online; investments in omni-channel growth not producing the anticipated benefits within the expected time-frame or at all; risks relating to vertical brands and new retail concepts; investments in business transformation initiatives not producing the anticipated benefits within the expected time-frame or at all; the amount devoted to strategic investments and the timing and success of those investments; inventory turn; changes in the competitive market and competition amongst retailers, including an increase in promotional activity;  weather-related disruptions and seasonality of the Company’s business; changes in existing tax, labor, foreign trade and other laws and regulations, including those imposing new taxes, surcharges, and tariffs, and compliance with such laws and regulations; increasing labor costs; limitations on the availability of attractive retail store sites; whether we exchange additional Convertible Senior Notes; unauthorized disclosure of sensitive or confidential customer information; website downtime, disruptions or other problems with the eCommerce platform, including interruptions, delays or downtime caused by high volumes of users or transactions, deficiencies in design or implementation, or platform enhancements; disruptions or other problems with information systems; increasing direct competition from vendors, and increasing product costs due to various reasons, including foreign trade issues, currency exchange rate fluctuations, and increasing prices for raw materials due to inflation; risks associated with brick and mortar retail store model, including the ability to optimize our store lease portfolio and our distribution and fulfillment network; our ability to hire and retain quality teammates, including store managers and sales associates; negative reactions from customers, vendors and shareholders regarding Company policy changes and advocacy efforts related to social and political issues; the loss of key personnel; and developments with sports leagues, professional athletes or sports superstars.

For additional information on these and other factors that could affect the Company’s actual results, see the risk factors set forth in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the most recent Annual Report filed with the SEC on March 23, 2022. The Company disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation. Forward-looking statements included in this release are made as of the date of this release.

About DICK’S Sporting Goods, Inc.

DICK’S Sporting Goods (NYSE: DKS) creates confidence and excitement by personally equipping all athletes to achieve their dreams. Founded in 1948 and headquartered in Pittsburgh, the leading omnichannel retailer serves athletes and outdoor enthusiasts in more than 850 DICK’S Sporting Goods, Golf Galaxy, Field & Stream, Public Lands, Going Going Gone! and Warehouse Sale stores, online, and through the DICK’S mobile app. DICK’S also owns and operates DICK’S House of Sport and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile app for scheduling, communications, live scorekeeping and video streaming.

Driven by its belief that sports make people better, DICK’S has been a longtime champion for youth sports and, together with its Foundation, has donated millions of dollars to support under-resourced teams and athletes through the Sports Matter program and other community-based initiatives. Additional information about DICK’S business, corporate giving, sustainability efforts and employment opportunities can be found on dicks.cominvestors.dicks.comsportsmatter.orgdickssportinggoods.jobs and on Facebook, Twitter and Instagram.

Contacts:

Investor Relations:

Nate Gilch, Senior Director of Investor Relations

DICK’S Sporting Goods, Inc.

investors@dcsg.com

(724) 273-3400

Media Relations:

(724) 273-5552 or press@dcsg.com

Category: Earnings

 

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED

(In thousands, except per share data)




13 Weeks Ended



July 30,

2022


% of

Sales


July 31,

2021


% of

Sales










Net sales


$           3,112,419


100.00 %


$         3,274,842


100.00 %

Cost of goods sold, including occupancy and distribution costs


1,991,037


63.97


1,967,765


60.09










GROSS PROFIT


1,121,382


36.03


1,307,077


39.91










Selling, general and administrative expenses


657,368


21.12


640,268


19.55

Pre-opening expenses


3,836


0.12


3,256


0.10










INCOME FROM OPERATIONS


460,178


14.79


663,553


20.26










Interest expense


25,494


0.82


13,801


0.42

Other expense (income)


7,363


0.24


(6,795)


(0.21)










INCOME BEFORE INCOME TAXES


427,321


13.73


656,547


20.05










Provision for income taxes


108,819


3.50


161,038


4.92










NET INCOME


$             318,502


10.23 %


$            495,509


15.13 %










EARNINGS PER COMMON SHARE:









Basic


$                    4.21




$                   5.86



Diluted


$                    3.25




$                   4.53












NUMERATOR USED TO COMPUTE EARNINGS PER COMMON SHARE:









Basic


$             318,502




$            495,509



Diluted


$             326,494




$            495,509












WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:









Basic


75,610




84,512



Diluted


100,389




109,271








































 

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED

(In thousands, except per share data)




26 Weeks Ended



July 30,

2022


% of

Sales


July 31,

2021


% of

Sales (1)












Net sales


$           5,812,624


100.0 %


$            6,193,561


100.0 %


Cost of goods sold, including occupancy and distribution costs


3,706,528


63.77


3,797,857


61.32












GROSS PROFIT


2,106,096


36.23


2,395,704


38.68












Selling, general and administrative expenses


1,272,661


21.89


1,248,562


20.16


Pre-opening expenses


6,736


0.12


7,780


0.13












INCOME FROM OPERATIONS


826,699


14.22


1,139,362


18.40












Interest expense


51,136


0.88


27,183


0.44


Other expense (income)


16,385


0.28


(14,146)


(0.23)












INCOME BEFORE INCOME TAXES


759,178


13.06


1,126,325


18.19












Provision for income taxes


180,117


3.10


269,060


4.34












NET INCOME


$              579,061


9.96 %


$              857,265


13.84 %












EARNINGS PER COMMON SHARE:










Basic


$                     7.63




$                   10.13




Diluted


$                     5.70




$                     7.96














NUMERATOR USED TO COMPUTE EARNINGS PER COMMON SHARE:










Basic


$              579,061




$              857,265




Diluted


$              595,262




$              857,265














WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:










Basic


75,895




84,631




Diluted


104,509




107,641
























(1) Column does not add due to rounding

 

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS – UNAUDITED

(In thousands)




July 30,

2022


July 31,

2021


January 29,

2022

ASSETS







CURRENT ASSETS:







Cash and cash equivalents


$             1,895,521


$             2,236,733


$            2,643,205

Accounts receivable, net


83,151


88,725


68,263

Income taxes receivable


1,277


700


1,978

Inventories, net


2,995,963


2,011,020


2,297,609

Prepaid expenses and other current assets


100,761


81,758


95,601

Total current assets


5,076,673


4,418,936


5,106,656








Property and equipment, net


1,321,737


1,323,174


1,319,681

Operating lease assets


2,071,084


2,083,010


2,044,819

Intangible assets, net


85,553


88,157


86,767

Goodwill


245,857


245,857


245,857

Deferred income taxes


55,873


34,672


35,024

Other assets


208,498


192,358


202,872

TOTAL ASSETS


$            9,065,275


$             8,386,164


$             9,041,676








LIABILITIES AND STOCKHOLDERS’ EQUITY







CURRENT LIABILITIES:







Accounts payable


$             1,489,321


$             1,213,449


$              1,281,322

Accrued expenses


503,759


564,400


620,143

Operating lease liabilities


482,195


468,667


480,318

Income taxes payable


12,673


83,645


13,464

Deferred revenue and other liabilities


294,003


237,143


317,433

Total current liabilities


2,781,951


2,567,304


2,712,680

LONG-TERM LIABILITIES:







Revolving credit borrowings




 Senior Notes


1,481,886



1,481,443

 Convertible Senior Notes


368,478


433,456


449,287

Long-term operating lease liabilities


2,096,410


2,173,897


2,099,146

Other long-term liabilities


163,041


206,132


197,534

Total long-term liabilities


4,109,815


2,813,485


4,227,410

COMMITMENTS AND CONTINGENCIES







STOCKHOLDERS’ EQUITY:







Common stock


522


605


520

Class B common stock


236


237


236

Additional paid-in capital


1,384,949


1,468,217


1,488,834

Retained earnings


4,493,516


3,857,257


3,956,602

 Accumulated other comprehensive loss


(85)


(6)


(82)

Treasury stock, at cost


(3,705,629)


(2,320,935)


(3,344,524)

Total stockholders’ equity


2,173,509


3,005,375


2,101,586

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY


$            9,065,275


$             8,386,164


$             9,041,676








 

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS – UNAUDITED

(In thousands)




26 Weeks Ended



July 30,

2022


July 31,

2021

CASH FLOWS FROM OPERATING ACTIVITIES:





Net income


$            579,061


$            857,265

Adjustments to reconcile net income to net cash provided by operating activities:





Depreciation and amortization


164,269


158,009

Amortization of deferred financing fees and debt discount


2,601


14,963

Deferred income taxes


8,416


16,803

Stock-based compensation


26,694


25,414

Other, net


6,852


Changes in assets and liabilities:





Accounts receivable


(28,971)


(22,754)

Inventories


(698,354)


(57,452)

Prepaid expenses and other assets


(9,430)


1,559

Accounts payable


189,082


13,578

Accrued expenses


(90,127)


35,853

Income taxes payable / receivable


877


48,344

Construction allowances provided by landlords


29,273


18,344

Deferred revenue and other liabilities


(35,280)


(24,563)

Operating lease assets and liabilities


(43,219)


(54,582)

Net cash provided by operating activities


101,744


1,030,781

CASH FLOWS FROM INVESTING ACTIVITIES:





 Capital expenditures


(167,693)


(167,689)

        Proceeds from sale of other assets


14,261


9,671

      Deposits and other investing activities


(17,580)


(19,130)

Net cash used in investing activities


(171,012)


(177,148)

CASH FLOWS FROM FINANCING ACTIVITIES:





Principal paid in connection with exchange of Convertible Senior Notes


(200,000)


       Payments on other long-term debt and finance lease obligations


(361)


(385)

Proceeds from exercise of stock options


13,997


20,648

Minimum tax withholding requirements


(35,147)


(20,132)

Cash paid for treasury stock


(392,882)


(152,687)

Cash dividends paid to stockholders


(82,937)


(64,232)

Increase (decrease) in bank overdraft


18,917


(58,222)

Net cash used in financing activities


(678,413)


(275,010)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS


(3)


43

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS


(747,684)


578,666

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD


2,643,205


1,658,067

CASH AND CASH EQUIVALENTS, END OF PERIOD


$         1,895,521


$         2,236,733

 

DICK’S SPORTING GOODS, INC.

GAAP to NON-GAAP RECONCILIATIONS – UNAUDITED


Non-GAAP Net Income and Earnings Per Share Reconciliations

(in thousands, except per share amounts)



13 Weeks Ended July 30, 2022








Net income

After tax

interest from

Convertible

Senior Notes (2)

Numerator used

to compute

earnings per

diluted share

Weighted

average

diluted

shares

Earnings

per

diluted

share

GAAP Basis

$    318,502

$                7,992

$           326,494

100,389

$         3.25

% of Net Sales

10.23 %

0.26 %

10.49 %



Convertible Senior Notes (1)

(7,992)

(7,992)

(13,881)


Non-GAAP Basis

$    318,502

$                      —

$            318,502

86,508

$         3.68

% of Net Sales

10.23 %

— %

10.23 %





(1)

Adjustment eliminates the impact of assumed share settlement of the Convertible Senior Notes as required by the if-converted method. Due to the Company’s intent to settle the Convertible Senior Notes’ principal in cash and the shares the Company expects to receive under its convertible bond hedge, which is designed to offset dilution, the Company does not expect the Convertible Senior Notes will have a dilutive effect upon conversion. Accordingly, the Company believes reflecting the notes as debt more closely represents the economics of the transaction upon future conversion.

(2)

The provision for income taxes for non-GAAP adjustments was calculated at 26%, which approximates the Company’s blended tax rate.

 


26 Weeks Ended July 30, 2022








Net income

After tax

interest from

Convertible

Senior Notes (2)

Numerator used

to compute

earnings per

diluted share

Weighted

average

diluted

shares

Earnings

per

diluted

share

GAAP Basis

$    579,061

$               16,201

$            595,262

104,509

$         5.70

% of Net Sales

9.96 %

0.28 %

10.24 %



Convertible Senior Notes (1)

(16,201)

(16,201)

(15,481)


Non-GAAP Basis

$    579,061

$                      —

$             579,061

89,028

$         6.50

% of Net Sales

9.96 %

— %

9.96 %





(1)

Adjustment eliminates the impact of assumed share settlement of the Convertible Senior Notes as required by the if-converted method. Due to the Company’s intent to settle the Convertible Senior Notes’ principal in cash and the shares the Company expects to receive under its convertible bond hedge, which is designed to offset dilution, the Company does not expect the Convertible Senior Notes will have a dilutive effect upon conversion. Accordingly, the Company believes reflecting the notes as debt more closely represents the economics of the transaction upon future conversion.

(2)

The provision for income taxes for non-GAAP adjustments was calculated at 26%, which approximates the Company’s blended tax rate.

 


13 Weeks Ended July 31, 2021









Income

from

operations

Interest

expense

Income

before

income taxes

Net

 income (2)

Diluted

shares

outstanding

during

period

Earnings

per

diluted

share

GAAP Basis

$   663,553

$    13,801

$     656,547

$     495,509

109,271

$         4.53

% of Net Sales

20.26 %

0.42 %

20.05 %

15.13 %



Convertible Senior Notes (1)

(7,656)

7,656

5,665

(10,680)


Non-GAAP Basis

$   663,553

$      6,145

$     664,203

$       501,174

98,591

$         5.08

% of Net Sales

20.26 %

0.19 %

20.28 %

15.30 %





(1)

Amortization of the non-cash debt discount on the Company’s Convertible Senior Notes and diluted shares that are designed to be offset at settlement by shares delivered from the convertible note hedge purchased by the Company.

(2)

The provision for income taxes for non-GAAP adjustments was calculated at 26%, which approximated the Company’s blended tax rate.

 


26 Weeks Ended July 31, 2021









Income

from

operations

Interest

expense

Income

before

income taxes

Net

 income (2)

Diluted

shares

outstanding

during

period

Earnings

per

diluted

share

GAAP Basis

$ 1,139,362

$    27,183

$   1,126,325

$      857,265

107,641

$         7.96

% of Net Sales

18.40 %

0.44 %

18.19 %

13.84 %



Convertible Senior Notes (1)

(14,963)

14,963

11,073

(9,947)


Non-GAAP Basis

$ 1,139,362

$    12,220

$   1,141,288

$     868,338

97,694

$         8.89

% of Net Sales

18.40 %

0.20 %

18.43 %

14.02 %





(1)

Amortization of the non-cash debt discount on the Company’s Convertible Senior Notes and diluted shares that are designed to be offset at settlement by shares delivered from the convertible note hedge purchased by the Company.

(2)

The provision for income taxes for non-GAAP adjustments was calculated at 26%, which approximated the Company’s blended tax rate.

 

Reconciliation of Gross Capital Expenditures to Net Capital Expenditures

(in thousands) 


The following table represents a reconciliation of the Company’s gross capital expenditures to its capital expenditures, net of tenant allowances. 




26 Weeks Ended



July 30,

2022


July 31,

2021

Gross capital expenditures


$                (167,693)


$                (167,689)

Construction allowances provided by landlords


29,273


18,344

Net capital expenditures


$                (138,420)


$                (149,345)

 

Reconciliation of Non-GAAP Earnings Per Diluted Share Guidance

(in millions, except per share amounts)



52 Weeks Ended January 28, 2023


Low End


High End


Net

income

After tax

interest

from

Convertible

Senior

Notes (2)

Numerator

used to

compute

earnings

per diluted

share

Weighted

average

diluted

shares

Earnings

per

diluted

share


Net

income

After tax

interest

from

Convertible

Senior

Notes (2)

Numerator

used to

compute

earnings

per diluted

share

Weighted

average

diluted

shares

Earnings

per

diluted

share

GAAP Basis

$     880

$              22

$          902

102

$       8.85


$  1,056

$              22

$        1,078

102

$      10.55

Convertible Senior Notes(1)

(22)

(22)

(14)



(22)

(22)

(14)


Non-GAAP Basis

$     880

$              —

$          880

88

$     10.00


$  1,056

$              —

$        1,056

88

$      12.00















(1)

Adjustment eliminates the impact of assumed share settlement of the Convertible Senior Notes as required by the if-converted method. Due to the Company’s intent to settle the Convertible Senior Notes’ principal in cash and the shares the Company expects to receive under its convertible bond hedge, which is designed to offset dilution, the Company does not expect the Convertible Senior Notes will have a dilutive effect upon conversion. Accordingly, the Company believes reflecting the notes as debt more closely represents the economics of the transaction upon future conversion.

(2)

The provision for income taxes for non-GAAP adjustments was calculated at 26%, which approximates the Company’s blended tax rate.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/dicks-sporting-goods-reports-second-quarter-results-raises-full-year-guidance-301610324.html

SOURCE DICK’S Sporting Goods, Inc.

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More
Videos
Videos

Latest News Feed