Dick's Sporting Goods(US:DKS)2024-05-30 21:21Financial Performance - Net sales increased by 6.2% to $3.02 billion in the current quarter, compared to $2.84 billion in the first quarter of 2023, with a favorable impact of approximately $45 million from the fiscal calendar shift[49]. - Comparable sales increased by 5.3% after a 3.6% increase in the same period last year, adjusted for the calendar shift due to the 53rd week in fiscal 2023[49]. - Net income for the current quarter was $275.3 million, or $3.30 per diluted share, down from $304.6 million, or $3.40 per diluted share, in the first quarter of 2023[49]. - Gross profit rose to $1,095.3 million, with a gross profit margin increase of 10 basis points, despite a 45 basis point decrease in merchandise margins due to higher markdowns[56]. - Income from operations was $330.8 million, slightly up from $325.6 million in the prior year[55]. Sales and Revenue Growth - Net sales increased by 6.2% to $3,018.4 million for the 13 weeks ended May 4, 2024, compared to $2,842.2 million for the same period in 2023[54]. - Comparable sales, adjusted for a shifted retail calendar, increased by 5.3%, or $150.6 million, driven by a 2.7% increase in transactions and a 2.6% increase in sales per transaction[54]. - The company expects full-year comparable sales growth to be in the range of 2% to 3% and earnings per diluted share to be between $13.35 and $13.75[43]. Expenses and Cost Management - Selling, general and administrative expenses are anticipated to leverage as a percentage of net sales due to last year's business optimization and ongoing productivity improvements[45]. - Selling, general and administrative expenses increased to $743.4 million, reflecting a 22 basis point increase as a percentage of net sales[57]. - Pre-opening expenses rose to $21.1 million, up from $9.1 million in the same quarter last year, due to the opening of two DICK'S House of Sport stores[58]. Shareholder Returns - The company repurchased 0.5 million shares of common stock for a total cost of $113.6 million under its share repurchase program[49]. - A quarterly cash dividend of $1.10 per share was declared and paid for common and Class B common stock[49]. - During the quarter, the company repurchased 0.5 million shares at a cost of $113.6 million, with $665.9 million remaining under the share repurchase authorization[68]. Cash Flow and Investments - Net cash provided by operating activities for the 13 weeks ended May 4, 2024, was $231.7 million, a significant increase of $280.1 million compared to a net cash used of $48.4 million in the same period last year[73][74]. - Cash used in investing activities increased by $69.6 million for the 13 weeks ended May 4, 2024, primarily due to a $73.0 million rise in gross capital expenditures[75]. - Cash used in financing activities rose by $80.9 million for the 13 weeks ended May 4, 2024, driven by changes in bank overdraft balances and higher cash payments for share repurchases[76]. - The net decrease in cash and cash equivalents for the 13 weeks ended May 4, 2024, was $152.1 million, compared to a decrease of $281.7 million in the same period last year[73]. Market Conditions and Strategic Focus - The macroeconomic environment remains dynamic, influenced by inflationary pressures, elevated interest rates, and changes in consumer discretionary spending behavior[42]. - The company completed a business optimization in 2023 to better align talent and streamline costs in support of critical strategies[42]. - The company continues to invest in future DICK'S House of Sport locations and next-generation stores, indicating a focus on market expansion[75]. - There have been no material changes in the company's market risk exposures from those reported in the 2023 Annual Report[77].