While other retailers complained that a real winter season kept consumers inside during much of the fourth quarter, Dick’s Sporting Goods took the opportunity to keep goods flowing into-and out of-its stores.

Responding to winter weather conditions we haven’t seen in 15-20 years, Dick’s merchants were able to maximize sales and profits for the fourth quarter. 

DKS saw strength in the Men’s and Women’s Apparel categories and as well as in Winter Sports, Camping, Licensed Apparel and Boots.

Dick’s also announced the acquisition of the Walter Hagen trademark that they had been licensing since October 2001. The move comes as the retailer continues its strong commitment to the Golf category and its expansive golf departments. Dick’s said in January that it was the largest employer of PGA professionals.

Dick’s scaled back comp store expectations for 2003 from the 2002 performance, but should see strong double-digit earnings growth for the year.

For fiscal 2003, the company is projecting same-store sales to increase by 2% to 3%.

For the first quarter, net income should be in the range of $5.9 million to $6.4 million, an increase of 20% to 31%. DKS expects per-share earnings to range from 25 to 27 cents for the quarter. Dick’s management said they were comfortable with the consensus analyst EPS projection of $1.95 for 2003.

The Company expects to open 8 stores during the first quarter and 20 for the year.


KEY METRICS:

  • Private Label is now 6% of sales, can grow to 15%
  • Inventory turns up 8 bps to industry-leading 3.83x
  • Inventory up to $34 per square foot from $33


>>> DKS must be licking their chops as their largest competitor moves to Denver, moving it even further away from the coveted Northeast corridor and leaving Florida undefended…