Dicks Sporting Goods
Dick’s Sporting Goods Inc. on Tuesday scaled back its plans for sales, operating margin and number of stores as it looked ahead two years to fiscal year 2017.
The Findlay Township-based retailer set its 2017 sales target between $8.7 billion and $9 billion, which would be up between 8 percent and 10 percent from $6.8 billion in fiscal year 2014. But that’s down from Dick’s (NYSE: DKS) previous estimates, , when it expected a sales target of $10 billion by 2017. The newest estimate was released Tuesday morning ahead of the 2015 analyst meeting later in the day.
Dick's Sporting Goods exterior.
Operating margin, the ratio of operating profit to sales, is expected to land between 9 percent and 9.5 percent in 2017, which would be up from 8.2 percent in 2014 but down from the 10.5 percent it in 2013 predicted for 2017.
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Dick’s “is taking a measured approach to increase market share in the U.S. through growing its Dick’s Sporting Goods store base in new and underpenetrated markets and increasing its eCommerce sales, ” the company said in a statement. It now expects to have between 735 and 750 stores by the end of the 2017 fiscal year, up from 603 at the end of fiscal 2014 but not as many as the 800 it expected it would have back in September 2013. Dick expects to spend about $850 million to open new stores and remodel existing ones as well as build its own eCommerce platform.
"We continue to be excited about the profitable long-term growth opportunities of our business, " Chairman and CEO Edward W. Stack said in a statement. "We are operating in an attractive space in which we continue to gain market share and believe there is significant runway ahead. We remain intensely focused on driving shareholder value over the next three years by investing in the long-term growth of the business, repurchasing shares and paying quarterly dividends.”
Dick’s reaffirmed its outlook for the first quarter and full-year 2015 with earnings per share of between 49 cents and 53 cents in the first quarter and $3.10 to $3.20 for the full year. It said same-store sales would increase between 1 percent and 3 percent for the full year.
“Golf Galaxy gives the company access to premium golf brands, insights into the enthusiast golfer and provides scale with vendors, ” Dick’s said.
Dick’s also said it would continue growing its Field & Stream brand, which will have between 30 and 35 stores by the end of fiscal year 2017. That’s up from one in 2012.
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Is Dicks Sporting Goods a Franchise.
No. All Dicks stores are company-owned.