Dick's Sporting Goods Sets Growth Plans

TheStreet - Dick Sporting Goods (DKS) announced a long-term plan on Wednesday. It includes sales of $ 10 billion and operating profit margins are projected to reach 10.5% by the end of 2017.

Sportswear and apparel retailers based in Pittsburgh will make capital expenditures of $ 1.8 billion each May and will increase profitability primarily through the addition of real stores, the remodeling of stores and expansion of e-commerce. Platforming and development of Field & Stream outdoor specialized brand

Retailers said in a press release that the sales target is a combined annual growth rate (CAGR) of about 11% from the $ 5.8 billion sales in fiscal 2012. Dick Sporting Goods also believes that by increasing gross margin and expense management, we can raise the operating income margin in fiscal 2017 from about 0.5% in fiscal 2012 to about 0.5% from 10.5%.

Edward W. Stack, Chairman and CEO of the company, said at a press conference: "These investments are planning to anticipate our needs and create a sustainable long-term advantage.Capital investment to support our $ 10 billion sales target is approximately $ 1.8 billion . "

With plans to expand 300 stores over the next four years, more than 800 sports equipment stores will be opened by the end of 2017. As of the end of 2012, the company had 518 flagship stores.

Dick plans to raise the sales of e-commerce to about $ 1.1 billion from the $ 292 million at the end of 2012 by the end of 2017. We also announced plans to expand Field & Stream to about 55 stores and sales to 750 million dollars by fiscal 2017.

Last month, the company announced revenue of $ 84.1 million in the second quarter, 67 cents per share. Adjusted earnings were $ 88.9 million (71 cents per share), excluding asset impairment charges. Wall Street expects 74 cents per share

Dick's net sales in the second quarter were $ 1.5 billion, up 6%, but considering the 2012 calendar shift, comparable store sales were down 0.4%.

As consumers maintain a cautious stance, the company said in August that its sales forecast for the second half of this year is declining due to consumer cautiousness.

"The downturn in the consumer environment, the increase in precipitation, and the drop in air temperature resulted in a reduction in traffic volume and existing store sales were lower than expected, resulting in second-quarter results below our expectations," Mr. Stack Says. "The challenges facing us today are short-term and we are actively pursuing strategies to address these challenges, which is a reflection of the view on long-term growth opportunities for business profitability It is not something to change. "

Dicks Sporting Goods It is a US sports equipment retailer headquartered in Coraopolis, Pennsylvania. Established in 1948 by Richard "Dick" Stack, the company has approximately 850 stores and 30,000 employees by 2018. Dick's is the nation's largest sports equipment retailer and has been named Fortune 500. . As of 2018, the United States has about 850 stores. The listed company is located in Coraopolis, Pennsylvania, on the outskirts of Pittsburgh, and has about 30,300 employees as of January 2018. The company 's subsidiaries include Field & Stream and Golf Galaxy, as well as former Chelsea groups and genuine secondary runners. In 2017, there were 690 Dick Stores, nearly 100 Golf Galaxy Stores, and about 30 Field & Stream Stores. After the acquisition of Affinity Sports, Blue Sombrero, GameChanger, the company launched a series of digital products, Team Sports HQ.

Meanwhile, DICK'S Sporting Goods launched Team Sports HQ to sell more sporting goods. Gloves, sticks, ball This app collects CRM level data on teens sports users and is part of the Omni Channel's retail program designed to provide traffic to e-commerce portals and 821 stores is. As a result, TeamSnap and the other three riders rely on some changes in the Freemia subscription model to generate revenue, but DICK can provide their software for free.