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Dick’s Sporting Goods: Net Sales Rose in Fiscal 4Q15 and 2015

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Mar. 14 2016, Published 9:49 a.m. ET

Price movement 

Dick’s Sporting Goods (DKS) rose by 6.6%. It closed at $46.44 per share at the end of the second week of March 2016. The price movement on a weekly, monthly, and YTD (year-to-date) basis is 6.6%, 24.5%, and 31.8%, respectively.

Currently, Dick’s Sporting Goods is trading 11.7% above its 20-day moving average, 20.7% above its 50-day moving average, and 3.1% above its 200-day moving average.

The Vanguard Small-Cap ETF (VB) invests 0.18% of its holdings in Dick’s Sporting Goods. VB tracks the CRSP US Small Cap Index. The market-cap-weighted index includes the bottom 2%–15% of the investable universe. VB’s YTD price movement was -3.5% as of March 10, 2016.

The market caps of its competitors are as follows:

  • Foot Locker (FL) – $8.8 billion
  • Fitbit (FIT) – $3.1 billion
  • Cabela’s (CAB) – $3.3 billion
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Performance in fiscal 4Q15 and fiscal 2015

Dick’s Sporting Goods reported fiscal 4Q15 net sales of $2,240.1 million—a rise of 3.7% compared to net sales of $2,160.0 million in fiscal 4Q14. The company’s cost of goods sold, including occupancy and distribution costs as a percentage of net sales, rose by 2.9% and its operating income fell by 17.0% in fiscal 4Q15—compared to the same period last year.

Its net income and EPS (earnings per share) fell to $129.0 million and $1.13, respectively, in fiscal 4Q15—compared to $155.5 million and $1.30, respectively, in fiscal 4Q14.

Fiscal 2015 results

In fiscal 2015, Dick’s Sporting Goods reported net sales of $7,271.0 million—a rise of 6.7% year-over-year. Its net income and EPS fell to $330.4 million and $2.83, respectively, in fiscal 2015—compared to $344.2 million and $2.84, respectively, in fiscal 2014.

Meanwhile, its cash and cash equivalents fell by 46.4% and its inventories rose by 9.8% in fiscal 2015. Its current ratio fell to 1.5x and DE (debt-to-equity) ratio rose to 0.99x in fiscal 2015—compared to a current ratio and a DE ratio of 1.6x and 0.85x, respectively, in fiscal 2014.

Its price-to-earnings and price-to-book value ratios are 16.4x and 2.9x, respectively, as of March 11, 2016.

On March 15, 2016, the company will present at the Bank of America Merrill Lynch Consumer and Retail Tech Conference at 9:40 AM EST at The New York Palace Hotel.

Projections

The company made the following projections for fiscal 1Q16 and fiscal 2015:

Fiscal 1Q16

  • It expects the consolidated EPS to be ~$0.48–$0.50.
  • It expects consolidated same-store sales to be flat to an increased of 1%.

Fiscal 2016

  • Dick’s Sporting Goods expects the consolidated EPS to be ~$2.85–$3.00.
  • Consolidated same-store sales are expected to be flat to an increase of 2%.
  • The company plans to open 36 new stores and relocate approximately nine stores. It also plans to open approximately nine new Field & Stream stores and two new Golf Galaxy stores.
  • It expects capital expenditures of ~$230 million on a net basis and ~$420 million on a gross basis.
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