Case
Supplementary Resources
Abstract
Once a major brick-and-mortar retailer of sports equipment, Dick’s Sporting Goods has fallen victim to the rise of e-commerce. Though its decision to stop the sales of firearms in 2018 was considered the right thing to do, the company now risks losing a customer segment, which had brought in a revenue of US$1 billion the year before.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit. DICK’S Financials
DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED (in thousands, except per share data) | ||||
---|---|---|---|---|
| 53 Weeks Ended | 52 Weeks Ended | ||
February 3, 2018 | % of Sales1 | January 28, 2017 | % of Sales1 | |
Net sales | $8,590,472 | 100.00% | $7,921,981 | 100.00% |
Cost of goods sold, including occupancy and distribution costs | 6,101,412 | 71.03 | 5,556,198 | 70.14 |
GROSS PROFIT | 2,489,060 | 28.97 | 2,365,783 | 29.86 |
Selling, general and administrative expenses | 1,982,363 | 23.08 | ,875,643 | 23.68 |
Pre-opening expenses | 29,123 | 0.34 | 10,268 | 0.51 |
INCOME FROM OPERATIONS | 477,574 | 5.56 | 449,854 | 5.68 |
Interest expense | 8,047 | 0.09 | 5,856 | 0.07 |
Other income | (31,810) | (0.37) | (14,424) | (0.18) |
INCOME BEFORE INCOME TAXES | 501,337 | 5.84 | 458,422 | 5.79 |
Provision for income taxes | 77,892 | 2.07 | 171,026 | 2.16 |
NET INCOME | $323,445 | 3.77% | $287,396 | 3.63% |
EARNINGS PER COMMON SHARE: | ||||
Basic | $3.02 | $2.59 | ||
Diluted | $3.01 | $2.56 | ||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
Basic | 106,977 | 111,095 | ||
Diluted | 107,586 | 112,216 | ||
Cash dividends declared per share | $0.680 | $0.605 |
1Column does not add due to rounding
DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS – UNAUDITED (Dollars in thousands) | ||
---|---|---|
| February 3, 2018 | January 28, 2017 |
ASSETS | ||
CURRENT ASSETS: | ||
Cash and cas equivalents | $101,253 | $164,777 |
Accounts receivable, net | 60,107 | 75,199 |
Income taxes receivable | 4,433 | 2,307 |
Inventories, net | 1,711,103 | 1,638,632 |
Prepaid expenses and other current assets | 129,189 | 114,763 |
Total current assets | 2,006,085 | 1,995,678 |
Property and equipment, net | 1,677,340 | 1,522,574 |
Intangible assets, net | 136,587 | 140,835 |
Goodwill | 250,476 | 245,059 |
Other assets: | ||
Deferred income taxes | 13,639 | 45,927 |
Other | 19,812 | 108,223 |
Total other assets | 133,451 | 154,150 |
TOTAL ASSETS | $4,203,939 | $4,058,296 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
CURRENT LIABILITIES | ||
Accounts payable | $843,075 | $755,537 |
Accrued expenses | 354,81 | 384,210 |
Deferred revenue and other liabilities | 212,080 | 203,788 |
Income taxes payable | 10,476 | 53,234 |
Current portion of other long-term debt and leasing obligations | 5,202 | 646 |
Total current liabilities | 1,425,014 | 1,397,415 |
LONG-TERM LIABILITIES | ||
Other long-term debt and leasing obligations | 60,084 | 4,679 |
Deferred income taxes | 10,232 | — |
Deferred revenue and other liabilities | 767,1108 | 726,713 |
Total long-term liabilities | 837,424 | 731,392 |
COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY | ||
Common stock | 783 | 856 |
Class B common stock | 247 | 247 |
Additional paid-in capital | 1,77,778 | 1,130,830 |
Retained earnings | 2,205,651 | 1,956,066 |
Accumulated other comprehensive loss | (78) | (132) |
Treasury stock, at cost | (1,442,880) | (1,158,378) |
Total stockholders’ equity | 1,941,501 | 1,929,489 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $4,203,939 | $4,058,296 |
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved