DICK'S Sporting Goods Reports Fourth Quarter and Full Year 2023 Results; Delivers Largest Sales Quarter in Company History

Ed Stack, Executive Chairman

"We are guiding to another strong year in 2024. We plan to grow both our sales and earnings through positive comps, higher merchandise margin and productivity gains. With the continued success of our new store formats and our omnichannel experience, we will accelerate our investment in our growth strategies to drive our business forward and continue gaining market share in a fragmented $140-billion-dollar industry."

Lauren Hobart, President and Chief Executive Officer

Fourth Quarter Operating Results

(dollars in millions, except per share data)

14 Weeks Ended

 February 3,

2024 ⁽¹⁾

13 Weeks Ended

January 28,

2023

Net sales

$                 3,876

$                 3,597

$     279

7.8 %

Comparable store sales (13-week basis)

2.8 %

5.3 %

Income before income taxes (% of net sales) ⁽³⁾

10.2 %

8.9 %

129 bps

Non-GAAP income before income taxes (% of net sales) ^{(3) (4)} 

11.0 %

9.7 %

129 bps

Net income

$                     296

$                    236

$        61

26 %

Non-GAAP net income ⁽⁴⁾

$                     320

$                    258

$        62

24 %

Earnings per diluted share

$                    3.57

$                   2.60

$     0.97

37 %

Non-GAAP earnings per diluted share ⁽⁴⁾

$                    3.85

$                   2.93

$     0.92

31 %

53 Weeks Ended

February 3,

2024 ⁽¹⁾

52 Weeks Ended

January 28,

2023

Change ⁽²⁾

Net sales

$                12,984

$               12,368

$      616

5.0 %

Comparable store sales (52-week basis)

2.4 %

(0.5) %

Income before income taxes (% of net sales) ⁽³⁾

10.2 %

11.2 %

(104) bps

Non-GAAP income before income taxes (% of net sales) ^{(3) (4)} 

10.8 %

11.4 %

(63) bps

Net income

$                  1,047

$                 1,043

$          3

— %

Non-GAAP net income ⁽⁴⁾

$                  1,109

$                 1,065

$        44

4 %

Earnings per diluted share

$                  12.18

$                 10.78

$     1.40

13 %

Non-GAAP earnings per diluted share ⁽⁴⁾

$                  12.91

$                 12.04

$     0.87

7 %

Balance Sheet

(in millions)

As of

February 3, 2024

As of

January 28, 2023

$

Change ⁽²⁾

% 

Change ⁽²⁾

Cash and cash equivalents                                     

$                    1,801

$                     1,924

Inventories, net

$                    2,849

$                     2,831

$            18

1 %

Total debt ⁽⁵⁾

$                    1,483

$                     1,541

$           (57)

(4) %

Capital Allocation

(in millions)

53 Weeks Ended

February 3, 2024

52 Weeks Ended

January 28, 2023

$

Change ⁽²⁾

% 

Change

⁽²⁾

Share repurchases ⁽⁶⁾                                                         

$                       649

$                      427

$          222

52 %

Dividends paid ⁽⁷⁾

$                       351

$                      163

$          188

115 %

Gross capital expenditures

$                       587

$                      364

$          223

61 %

Net capital expenditures ⁽⁴⁾

$                       520

$                      328

$          192

59 %

 Principal paid in connection with exchange of

     Convertible Senior Notes ⁽⁸⁾

$                         —

$                      516

$         (516)

^1.

Includes net sales of $170.2 million and approximately $0.19 earnings per diluted share from the extra week of operations in our fiscal year.

^2.

Column may not recalculate due to rounding.

^3.

Also referred to by management as earnings before income taxes margin ("EBT margin").

^4.

For additional information, see GAAP to non-GAAP reconciliations included in tables later in the release under the heading "GAAP to Non-GAAP Reconciliations."

^5.

Fiscal 2022 included debt with a carrying value of $58 million related to the Company's Convertible Senior Notes, which were fully retired as of April 18, 2023. The Company had no outstanding borrowings under its revolving credit facility in 2023 and 2022.

^6.

During fiscal 2023 the Company repurchased 5.4 million shares of its common stock at an average price of $119.24 per share, for a total cost of $648.6 million under its share repurchase program. The Company has $780 million remaining under its authorization as of February 3, 2024.

^7.

The Company declared and paid quarterly dividends of $1.00 per share in fiscal 2023 and $0.4875 per share in fiscal 2022.

^8.

During fiscal 2022 the Company exchanged $516 million aggregate principal amount of Convertible Senior Notes and unwound the corresponding portion of the convertible bond hedge and warrants for $516 million of cash and 9.8 million shares of our common stock. During the first quarter of fiscal 2023, the Company retired the remaining $59.1 million of aggregate principal amount outstanding of the Convertible Senior Notes and related bond hedge and warrant transactions for 1.7 million shares of the Company's common stock. Refer to the Company's Form 8-K filed with the SEC on April 24, 2023 for additional information.

●        $12.85 to 13.25

○        Based on approximately 83 million diluted shares outstanding

○        Based on an effective tax rate of approximately 24%

Net sales

●        $13.0 billion to 13.13 billion

Comparable store sales

●        Positive 1.0% to positive 2.0%

●        Approximately $900 million on a gross basis

●        Approximately $800 million on a net basis

53 Weeks Ended February 3, 2024

52 Weeks Ended January 28, 2023

DICK'S 

Sporting Goods

Specialty

Concept Stores

⁽¹⁾

Total ⁽²⁾

DICK'S 

Sporting Goods

Specialty

Concept Stores

⁽¹⁾

Total ⁽²⁾

Beginning stores

728

125

853

730

131

861

Q1 New stores

—

—

—

—

1

1

Q2 New stores

—

1

1

1

1

2

Q3 New stores

1

9

10

3

6

9

Q4 New stores

—

—

—

—

1

1

Stores acquired ⁽³⁾

—

12

12

—

—

—

Closed stores

5

16

21

6

15

21

Ending stores

724 ⁽⁴⁾

131

855

728

125

853

Relocated stores

18

2

20

3

1

4

 Square Footage:

 (in millions)

DICK'S

Sporting Goods

⁽¹⁾

Specialty

Concept Stores ⁽²⁾

Total ^{(3) (5)}

Q1 2022

38.7

3.6

42.3

Q2 2022

38.8

3.6

42.4

Q3 2022

38.8

3.9

42.7

Q4 2022

39.2

3.4

42.6

Q1 2023

39.2

3.4

42.6

Q2 2023

39.0

3.4

42.4

Q3 2023

39.2

3.6

42.7

Q4 2023

39.3

3.4

42.7

⁽¹⁾

Includes our Golf Galaxy, Public Lands, Going Going Gone! and other specialty concept stores. As of February 3, 2024, we operated 104 Golf Galaxy stores, 7 Public Lands stores, 17 Going Going Gone! stores and other specialty concept stores. As of January 28, 2023, we operated 98 Golf Galaxy stores, 7 Public Lands stores, 15 Going Going Gone! stores and 5 Field & Stream stores. In some markets, we operate DICK'S Sporting Goods stores adjacent to our specialty concept stores on the same property with a pass-through for our athletes. We refer to this format as a "combo store" and include combo store openings within both the DICK'S Sporting Goods and specialty concept store reconciliations, as applicable. As of February 3, 2024, the Company operated 18 combo stores.

⁽²⁾

Excludes Warehouse Sale store locations that are temporary in nature, of which the Company operated 36 and 43 as of February 3, 2024  and January 28, 2023, respectively.

⁽³⁾

Represents Moosejaw store locations acquired by the Company during the first quarter of fiscal 2023, which average approximately 4,000 square feet per store.  The Company closed 10 of the previously acquired Moosejaw store locations during fiscal 2023.

⁽⁴⁾

As of February 3, 2024, includes 12 DICK'S House of Sport stores, which were either converted or relocated from prior store locations.

⁽⁵⁾

Column may not recalculate due to rounding.

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)

14 Weeks Ended

13 Weeks Ended

February 3,

2024

% of

Sales

January 28,

2023

% of

Sales ⁽¹⁾

Net sales

$        3,876,171

100.00 %

$          3,596,713

100.00 %

Cost of goods sold, including occupancy and distribution costs

2,541,992

65.58

2,430,674

67.58

GROSS PROFIT

1,334,179

34.42

1,166,039

32.42

Selling, general and administrative expenses

958,577

24.73

853,054

23.72

Pre-opening expenses

3,564

0.09

2,129

0.06

INCOME FROM OPERATIONS

372,038

9.60

310,856

8.64

Interest expense

14,215

0.37

17,953

0.50

Other income

(37,520)

(0.97)

(27,508)

(0.76)

INCOME BEFORE INCOME TAXES

395,343

10.20

320,411

8.91

Provision for income taxes

98,910

2.55

84,790

2.36

NET INCOME

$           296,433

7.65 %

$             235,621

6.55 %

EARNINGS PER COMMON SHARE:

Basic

$                 3.69

$                   2.91

Diluted

$                 3.57

$                   2.60

NUMERATOR USED TO COMPUTE EARNINGS PER COMMON SHARE:

Basic

$           296,433

$             235,621

Diluted

$           296,433

$             238,007

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

80,370

81,107

Diluted

83,111

91,395

⁽¹⁾ Column does not add due to rounding

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)

53 Weeks Ended

52 Weeks Ended

February 3,

2024

% of

Sales

January 28,

2023

% of

Sales ⁽¹⁾

Net sales

$      12,984,399

100.00 %

$      12,368,198

100.00 %

Cost of goods sold, including occupancy and distribution costs

8,450,664

65.08

8,083,640

65.36

GROSS PROFIT

4,533,735

34.92

4,284,558

34.64

Selling, general and administrative expenses

3,204,108

24.68

2,805,462

22.68

Pre-opening expenses

47,262

0.36

16,077

0.13

INCOME FROM OPERATIONS

1,282,365

9.88

1,463,019

11.83

Interest expense

58,023

0.45

95,220

0.77

Other income

(93,809)

(0.72)

(15,949)

(0.13)

INCOME BEFORE INCOME TAXES

1,318,151

10.15

1,383,748

11.19

Provision for income taxes

271,632

2.09

340,610

2.75

NET INCOME

$        1,046,519

8.06 %

$         1,043,138

8.43 %

EARNINGS PER COMMON SHARE:

Basic

$               12.72

$                13.43

Diluted

$               12.18

$                10.78

NUMERATOR USED TO COMPUTE EARNINGS PER COMMON SHARE:

Basic

$        1,046,519

$         1,043,138

Diluted

$        1,046,856

$         1,070,198

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

82,302

77,672

Diluted

85,925

99,274

⁽¹⁾ Column does not add due to rounding

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - UNAUDITED

(In thousands)

February 3,

2024

January 28,

2023

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$             1,801,220

$             1,924,386

Accounts receivable, net

114,877

71,286

Income taxes receivable

4,108

8,187

Inventories, net

2,848,797

2,830,917

Prepaid expenses and other current assets

121,047

128,410

Total current assets

4,890,049

4,963,186

Property and equipment, net

1,638,161

1,312,988

Operating lease assets

2,257,482

2,138,366

Intangible assets, net

56,663

60,364

Goodwill

245,857

245,857

Deferred income taxes

37,846

41,189

Other assets

185,694

230,246

TOTAL ASSETS

$              9,311,752

$             8,992,196

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$             1,288,728

$             1,206,066

Accrued expenses

551,369

508,573

Operating lease liabilities

492,856

546,755

Income taxes payable

54,508

29,624

Deferred revenue and other liabilities

364,933

350,428

Total current liabilities

2,752,394

2,641,446

LONG-TERM LIABILITIES:

Revolving credit borrowings

—

—

Senior notes

1,483,260

1,482,336

Convertible senior notes

—

58,271

Long-term operating lease liabilities

2,287,714

2,117,773

Other long-term liabilities

171,103

167,747

Total long-term liabilities

3,942,077

3,826,127

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:

Common stock

568

585

Class B common stock

236

236

Additional paid-in capital

1,448,855

1,416,847

Retained earnings

5,588,914

4,878,404

Accumulated other comprehensive loss

(329)

(252)

Treasury stock, at cost

(4,420,963)

(3,771,197)

Total stockholders' equity

2,617,281

2,524,623

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$              9,311,752

$             8,992,196

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(In thousands)

Fiscal Year Ended

February 3,

2024

January 28,

2023

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$           1,046,519

$            1,043,138

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

Depreciation and amortization

393,933

365,475

Amortization of deferred financing fees and debt discount

2,364

4,250

Deferred income taxes

3,343

23,100

Stock-based compensation

57,285

50,603

Other, net

9,332

15,306

Changes in assets and liabilities:

Accounts receivable

(4,236)

(13,558)

Inventories

18,823

(533,308)

Prepaid expenses and other assets

(18,220)

(9,690)

Accounts payable

20,365

13,983

Accrued expenses

(2,462)

(74,205)

Income taxes payable / receivable

29,167

12,256

Construction allowances provided by landlords

67,061

36,100

Deferred revenue and other liabilities

25,190

22,689

Operating lease assets and liabilities

(121,129)

(34,258)

Net cash provided by operating activities

1,527,335

921,881

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

(587,426)

(364,075)

Proceeds from sale of other assets

27,500

14,261

Other investing activities

(54,750)

(43,080)

Net cash used in investing activities

(614,676)

(392,894)

CASH FLOWS FROM FINANCING ACTIVITIES:

Principal paid in connection with exchange of convertible senior notes

(137)

(515,865)

Payments on finance lease obligations

(823)

(740)

Proceeds from exercise of stock options

15,205

23,681

Minimum tax withholding requirements

(98,917)

(43,936)

Cash paid for treasury stock

(648,554)

(458,456)

Cash dividends paid to stockholders

(351,201)

(163,081)

Increase (decrease) in bank overdraft

48,679

(89,239)

Net cash used in financing activities

(1,035,748)

(1,247,636)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

(77)

(170)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(123,166)

(718,819)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

1,924,386

2,643,205

CASH AND CASH EQUIVALENTS, END OF PERIOD

$            1,801,220

$           1,924,386

DICK'S SPORTING GOODS, INC.

GAAP to NON-GAAP RECONCILIATIONS - UNAUDITED

Non-GAAP Net Income and Earnings Per Share Reconciliations

(dollars in thousands, except per share amounts)

14 Weeks Ended February 3, 2024

Gross profit

Selling, general

and

administrative

expenses

Other

income

Income

before

income

taxes

Net

income ⁽³⁾

Earnings

per diluted

share

GAAP Basis

$ 1,334,179

$            958,577

$   (37,520)

$  395,343

$  296,433

$               3.57

% of Net Sales

34.42 %

24.73 %

(0.97) %

10.20 %

7.65 %

Business optimization charges ⁽¹⁾

5,661

(26,654)

—

32,315

23,913

Deferred compensation plan adjustments ⁽²⁾

—

(16,097)

16,097

—

—

Non-GAAP Basis

$  1,339,840

$            915,826

$    (21,423)

$   427,658

$  320,346

$               3.85

% of Net Sales

34.57 %

23.63 %

(0.55) %

11.03 %

8.26 %

⁽¹⁾

Includes $23.2 million of non-cash impairments of store assets, a $5.7 million write-down of inventory and $3.4 million of severance-related costs.

⁽²⁾

Includes non-cash changes in fair value of employee deferred compensation plan investments held in rabbi trusts.

⁽³⁾

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

53 Weeks Ended February 3, 2024

Gross profit

Selling, general

and

administrative

expenses

Other

income

Income

before

income

taxes

Net

income ⁽³⁾

Earnings

per diluted

share

GAAP Basis

$  4,533,735

$         3,204,108

$   (93,809)

$ 1,318,151

$  1,046,519

$            12.18

% of Net Sales

34.92 %

24.68 %

(0.72) %

10.15 %

8.06 %

Business optimization charges ⁽¹⁾

11,984

(72,829)

—

84,813

62,762

Deferred compensation plan adjustments ⁽²⁾

—

(13,960)

13,960

—

—

Non-GAAP Basis

$  4,545,719

$          3,117,319

$   (79,849)

$  1,402,964

$  1,109,281

$            12.91

% of Net Sales

35.01 %

24.01 %

(0.61) %

10.80 %

8.54 %

⁽¹⁾

Includes $46.1 million of non-cash impairments of store and intangible assets, $26.7 million of severance-related costs and a $12.0 million write-down of inventory.

⁽²⁾

Includes non-cash changes in fair value of employee deferred compensation plan investments held in rabbi trusts.

⁽³⁾

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

13 Weeks Ended January 28, 2023

Gross

profit

Selling, general

and

administrative

expenses

Other

income

Income

before

income

taxes

Net

 income ⁽⁴⁾

After tax

interest

from

Convertible

Senior

Notes ⁽⁴⁾

Numerator

used to

compute

earnings

per diluted

share

Weighted

average

diluted

shares

Earnings

per

diluted

share

GAAP Basis

$  1,166,039

$        853,054

$ (27,508)

$   320,411

$    235,621

$       2,386

$ 238,007

91,395

$       2.60

% of Net Sales

32.42 %

23.72 %

(0.76) %

8.91 %

6.55 %

0.07 %

6.62 %

Convertible Senior Notes ⁽¹⁾

—

—

—

—

—

(2,386)

(2,386)

(3,381)

Field & Stream exit charges ⁽²⁾

740

(29,340)

—

30,080

22,259

—

22,259

—

Deferred compensation plan adjustments ⁽³⁾

—

(10,319)

10,319

—

—

—

—

—

Non-GAAP Basis

$  1,166,779

$        813,395

$ (17,189)

$ 350,491

$ 257,880

$             —

$ 257,880

88,014

$        2.93

% of Net Sales

32.44 %

22.61 %

(0.48) %

9.74 %

7.17 %

— %

7.17 %

⁽¹⁾

Adjustment eliminates the impact of assumed share settlement of the Convertible Senior Notes as required by "the if-converted method" under GAAP. The Company retired its Convertible Senior Notes without dilutive effect, due to cash payments for principal, shares received from its convertible bond hedge and shares repurchased to offset share settlement of remaining $59.1 million principal during the 13 weeks ended April 29, 2023. Accordingly, the Company believes reflecting the notes as debt more closely represents the economics of the transaction.

⁽²⁾

Field & Stream exit charges of $30.1 million included $28.5 million of non-cash impairments of store assets, $0.8 million of severance and a $0.7 million inventory write-down related to our closure of 12 Field & Stream stores in the fourth quarter of fiscal 2022.

⁽³⁾

Includes non-cash changes in fair value of employee deferred compensation plan investments held in rabbi trusts.

⁽⁴⁾

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

52 Weeks Ended January 28, 2023

Gross

profit

Selling, general

and

administrative

expenses

Other

income

Income

before

income

taxes

Net

 income ⁽⁴⁾

After tax

interest

from

Convertible

Senior

Notes ⁽⁴⁾

Numerator

used to

compute

earnings

per diluted

share

Weighted

average

diluted

shares

Earnings

per

diluted

share

GAAP Basis

$  4,284,558

$    2,805,462

$  (15,949)

$              1,383,748

$ 1,043,138

$     27,060

$  1,070,198

99,274

$      10.78

% of Net Sales

34.64 %

22.68 %

(0.13) %

11.19 %

8.43 %

0.22 %

8.65 %

Convertible Senior Notes ⁽¹⁾

—

—

—

—

—

(27,060)

(27,060)

(10,792)

Field & Stream exit charges ⁽²⁾

740

(29,340)

—

30,080

22,259

—

22,259

—

Deferred compensation plan adjustments ⁽³⁾

—

14,609

(14,609)

—

—

—

—

—

Non-GAAP Basis

$  4,285,298

$     2,790,731

$  (30,558)

$  1,413,828

$  1,065,397

$             —

$  1,065,397

88,482

$      12.04

% of Net Sales

34.65 %

22.56 %

(0.25) %

11.43 %

8.61 %

— %

8.61 %

⁽¹⁾

Adjustment eliminates the impact of assumed share settlement of the Convertible Senior Notes as required by "the if-converted method" under GAAP. The Company retired its Convertible Senior Notes without dilutive effect, due to cash payments for principal, shares received from its convertible bond hedge and shares repurchased to offset share settlement of remaining $59.1 million principal during the 13 weeks ended April 29, 2023. Accordingly, the Company believes reflecting the notes as debt more closely represents the economics of the transaction.

⁽²⁾

Field & Stream exit charges of $30.1 million included $28.5 million of non-cash impairments of store assets, $0.8 million of severance and a $0.7 million inventory write-down related to our closure of 12 Field & Stream stores in the fourth quarter of fiscal 2022.

⁽³⁾

Includes non-cash changes in fair value of employee deferred compensation plan investments held in rabbi trusts.

⁽⁴⁾

The provision for income taxes for non-GAAP adjustments was calculated at 26% which approximates 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 construction allowances.

Fiscal Year Ended

February 3,

2024

January 28,

2023

Gross capital expenditures

$               (587,426)

$               (364,075)

Construction allowances provided by landlords

67,061

36,100

Net capital expenditures

$               (520,365)

$               (327,975)

Fiscal 2023 Net Sales Adjusted for the 53rd Week

(in thousands)

Net sales adjusted for the extra week during the 14 and 53 weeks ended February 3, 2024 is presented below to illustrate the impact of the extra

week on reported net sales in comparison to reported results for the 13 and 52 weeks ended January 28, 2023.

Period Ended February 3, 2024

14 Weeks

53 Weeks

Net sales

$               3,876,171

$            12,984,399

Less: 53^rd week net sales

(170,223)

(170,223)

Adjusted net sales

$              3,705,948

$             12,814,176