Dick's Sporting Goods reported a 63% increase in net sales, a jump driven largely by its acquisition of Foot Locker. The deal expanded Dick's revenue base and materially boosted its top-line performance, signaling significant business scale and market consolidation in the sporting-goods retail sector.
PITTSBURGH (BRAIN) — Dick's Sporting Goods net sales increased 53% year-over-year in the second quarter, boosted in part from its acquisition of Foot Locker last September. Net sales for the quarter ending Aug. 1 were $5.6 billion, compared with $3.6 billion at the same time last year. Foot Locker net sales for the second quarter were $1.7 billion. Because of what Dick's calls "challenging conditions in the athletic footwear marketplace," it is lowering Foot Locker's proforma comparable sales outlook to a range of negative 2.0% to 0.0%. It also is lowering operating income outlook for both Dick's and Foot Locker but maintaining Dick's comparable sales outlook of 2.5% to 4.0% growth. "As the quarter progressed, conditions across portions of the athletic footwear and apparel marketplace became increasingly promotional, and we took action to remain competitively priced to protect and grow our leadership position," said Ed Stack, executive chairman. "This environment had a more significant impact on the Foot Locker business given its greater exposure to legacy footwear silhouettes and greater dependence on footwear launch and retro product. Not only were there fewer launches in the second quarter, but those launches performed below both industry and our expectations. As a result, we are taking a more cautious view of the balance of the year." Net income for the quarter was $315 million, down 17% from $381 million at the same time last year. Earnings per share decreased 19%, from $4.38 to $3.53. Dick's received $59 million in tariff refunds and $2.1 million in related interest income during the quarter. The refunds were recorded as a reduction to cost of goods sold, and the related interest income was recorded within other income expenses on the consolidated statements of income. Dick's Sporting Goods is traded on the New York Stock Exchange under the DKS symbol. More information: DKS stock quote at NYSE.com .
Curated by Taleb Kabbara · Source: www.bicycleretailer.com
Dick's, Foot Locker, Bicycle Retailer & Industry News
Dick's: Dick's is a sporting goods retailer whose net sales rose 63% aided by its acquisition of Foot Locker.
Foot Locker: Foot Locker is a retail footwear and athletic apparel company that was acquired and whose acquisition helped drive Dick's 63% net sales increase.
Bicycle Retailer & Industry News: Bicycle Retailer & Industry News is the publication that carried the headline and article about Dick's net sales rise and the Foot Locker acquisition.
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