Dicks Sporting Goods reported that net income for the fourth quarter ended January 29 increased 12.1% to $39.9 million, or 75 cents per share, compared to pro forma net income of $35.6 million, or 69 cents per diluted share, for the year-ago period. Pro forma results for 2003 include results from Galyans, which was acquired in August 2004. Gross margin dipped 40 basis points to 28.7% of sales from 29.1% in the year-ago quarter on a pro forma basis. SG&A declined as a percentage of sales to 19.1% from 20.4% in Q4 2004 on a pro forma basis.
Total sales for the quarter increased 9.0% to $788.0 million, compared to pro forma sales of $723.1 million. Comp store sales, which do not include the Galyans results, increased 1.1% for the quarter.
In discussing the transition of brands from Galyans to Dicks, chairman and CEO Ed Stack said the only line they havent been able to add to the mix since the acquisition is Patagonia. He said it was an “insignificant amount of business” with Galyans, but they would have liked to have the brand.
In addition to continued strength in the womens athletic business, DKS will be investing more heavily in the rugged outdoor category in womens. It has reportedly done well in a number of test markets and will be rolled out to the vast majority of the chain” this year.
Snow sports hardlines will probably continue in 40 stores, primarily in snowboard, rather than alpine ski.
All Galyans stores have been re-signed and now operate as Dicks stores.
