Dick's Sporting Goods(US:DKS)2021-08-25 20:05Financial Data and Key Metrics Changes - The company reported record quarterly sales of approximately $3.27 billion, a 20.7% increase compared to the same period last year [16] - Consolidated same-store sales increased by 19.2%, building on a 20.7% increase in the same period last year [16] - Non-GAAP earnings per diluted share reached $5.08, representing a 58% increase year-over-year and a 303% increase compared to Q2 2019 [19] Business Line Data and Key Metrics Changes - Strong growth was observed across all three primary categories: hardlines, apparel, and footwear, with double-digit sales growth [8] - Brick-and-mortar stores comped up nearly 40% versus last year and delivered a 36% sales increase compared to 2019 [9] - E-commerce sales increased by 111% compared to 2019, although there was a 28% decline versus last year due to a high base effect [10][16] Market Data and Key Metrics Changes - The company successfully retained 8.5 million new athletes acquired last year and added 2 million new athletes during the quarter [8] - The online business grew from 12% of total net sales in 2019 to 18% in the current quarter [16] - The golf business, particularly through Golf Galaxy, has seen significant growth, with plans to expand TrackMan technology to all stores [12] Company Strategy and Development Direction - The company is focused on transforming the athlete experience and investing in new concepts like DICK'S House of Sport and Public Lands [6][13] - A commitment to enhancing the omnichannel experience is evident, with over 90% of total sales enabled by stores [9] - The company plans to continue investing in technology, infrastructure, and team development to support future growth [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sales and earnings trajectory, raising full-year sales and earnings guidance for the second time this year [13][23] - The company acknowledged potential challenges from global supply chain disruptions but remains optimistic about consumer demand [23][38] - Management highlighted a fundamental shift in consumer behavior towards health and fitness, which is expected to sustain demand [26] Other Important Information - The company announced a special dividend of $5.50 per share and increased its quarterly dividend by 21% [7][22] - A transition in the CFO role was noted, with Navdeep Gupta appointed as the new CFO effective October 1st [15] Q&A Session All Questions and Answers Question: Does the industry continue to grow and compound at new order levels? - Management indicated that consumer demand for sporting goods remains strong, with categories significantly higher than pre-pandemic levels [30] Question: Are you seeing traffic to the business accelerate? - Yes, traffic is accelerating significantly, along with an increase in average unit retail (AUR) [32] Question: Can you talk about e-commerce profitability? - E-commerce profitability is now in line with the company average, with ongoing improvements expected [33] Question: What is the outlook for back-to-school sales? - The entire business is trending strong, with both team sports and back-to-school contributing positively [34] Question: What insights do you have about new customers? - The retention rate of new athletes remains strong, and the company is actively engaging them through personalized marketing [37] Question: How do you feel about product availability for the holiday season? - The company is confident in having products available for the holiday season, despite ongoing supply chain challenges [38] Question: Can you provide additional color on the back half of the year? - Guidance for the back half of the year has been raised significantly, with expectations for low single to mid-digit negative comps [41] Question: How much of the sales performance is attributed to market share versus overall market growth? - The company believes it is taking market share, particularly in apparel, footwear, and team sports [58]