Dick's Sporting Goods(US:DKS)2025-03-27 20:05Financial Performance - Net sales increased by 3.5% to $13.44 billion in fiscal 2024, compared to $12.98 billion in fiscal 2023, with comparable sales growth of 5.2%[160] - Net income for fiscal 2024 was $1.17 billion, or $14.05 per diluted share, up from $1.05 billion, or $12.18 per diluted share in fiscal 2023[160] - Income from operations rose to $1,473.9 million in Fiscal 2024, up from $1,282.4 million in Fiscal 2023[166] - Gross profit increased to $4,825.7 million in Fiscal 2024, with a gross profit margin improvement of 98 basis points compared to the previous year[167] - The effective tax rate increased to 23.3% in Fiscal 2024 from 20.6% in Fiscal 2023[171] Expenses and Charges - The company incurred pre-tax charges of $84.8 million from business optimization, including $46.1 million in non-cash impairments and $26.7 million in severance-related costs[150] - Selling, general and administrative expenses were approximately flat as a percentage of net sales at 24.51% in fiscal 2024, compared to 24.52% in fiscal 2023[161] - Selling, general and administrative expenses increased to $3,294.3 million in Fiscal 2024, remaining flat as a percentage of net sales[168] Future Projections - The company expects comparable sales growth for fiscal 2025 to be in the range of 1% to 3%, with earnings per diluted share projected between $13.80 and $14.40[154] - Capital expenditures totaled $802.6 million in Fiscal 2024, with an anticipated increase to approximately $1 billion in 2025[178][179] - The company plans to open approximately 16 DICK'S House of Sport locations in 2025, contributing to a projected 3% increase in square footage[179] Shareholder Returns - The company repurchased 1.3 million shares of common stock for a total cost of $268.0 million during fiscal 2024[160] - The company repurchased 1.3 million shares at a cost of $268.0 million in Fiscal 2024, with $511.5 million remaining under the share repurchase program[181] - Dividends paid to stockholders in Fiscal 2024 amounted to $361.7 million, with a 10% increase in the quarterly cash dividend declared for 2025[183] Inventory and Operations - Inventory shrink as a percentage of net sales decreased by 25 basis points in fiscal 2024 compared to fiscal 2023[156] - The company operates a total of 856 stores as of February 1, 2025, with a net increase of 1 store during fiscal 2024[159] - The company plans to reposition its store portfolio to enhance its omni-channel growth strategy, focusing on digital and in-store opportunities[149] Risk Factors - A 10% change in shrink reserves as of February 1, 2025, would have affected income before income taxes by approximately $2.9 million in fiscal 2024[195] - As of February 1, 2025, there were no reporting units at risk of impairment, and a 10% change in the fair value of reporting units would not indicate potential impairment of goodwill[197] - No significant impairments were recorded in fiscal 2024, 2023, or 2022 for indefinite-lived intangible assets[198] - A hypothetical 100 basis point change in interest rates would have affected income before income taxes by approximately $16 million based on average cash equivalents during 2024[202] - Inflationary factors may adversely affect operating results, although no material impact has been observed to date[203] - The business is subject to seasonal influences, with historically highest sales occurring in the second and fourth fiscal quarters[204]