Dick's Sporting Goods(DKS) - 2025 Q3 - Quarterly Report

Financial Performance - Net sales increased 0.5% to $3.06 billion in the current quarter from$3.04 billion during the third quarter of 2023, with a calendar shift unfavorably impacting net sales comparisons by approximately $105 million[63] - Comparable sales increased 4.2$227.8 million, or $2.75 per diluted share, compared to$201.1 million, or $2.39 per diluted share, during the third quarter of 2023[63] - Net sales increased 0.5$3,057.2 million in Q3 2024, with comparable sales increasing 4.2% adjusted for calendar shift[73] - Gross profit increased to $1,093.4 million in Q3 2024, with merchandise margins increasing 104 basis points due to favorable sales mix[75] - Income from operations increased to$286.0 million in Q3 2024, up from $272.9 million in Q3 2023[74] - Net sales for the 39 weeks ended November 2, 2024, increased 4.8$9,549.2 million, with comparable sales up 4.7% adjusted for calendar shift[81] - Income from operations for the 39 weeks ended November 2, 2024, increased to $1,086.9 million, compared to$910.3 million in the prior year period[82] - Gross profit increased to $3,464.4 million, up 115 basis points as a percentage of net sales, driven by favorable sales mix, lower inventory shrink, and reduced eCommerce shipping costs[83] Expenses and Costs - Selling, general and administrative expenses increased 2.9$790.6 million in Q3 2024, driven by strategic investments and higher incentive compensation[77] - Pre-opening expenses decreased to $16.8 million in Q3 2024 from$20.3 million in Q3 2023, reflecting fluctuations in new store openings[78] - Selling, general and administrative expenses increased 4.7% to $2,330.7 million, but decreased as a percentage of net sales by 4 basis points due to higher net sales[84] - Pre-opening expenses decreased to$46.8 million, supporting the opening of five DICK'S House of Sport stores compared to nine in the prior year[86] - The effective tax rate increased to 22.9% from 18.7% due to lower excess tax benefits from employee equity awards[88] Capital and Investments - The company plans to open additional DICK'S House of Sport stores, next-generation 50,000 square foot DICK'S stores, and Golf Galaxy Performance Center stores[44] - The company expects capital expenditures to be concentrated on new store development, relocations, remodels, and technology investments to enhance store fulfillment and in-store pickup capabilities[44] - Capital expenditures for the 39 weeks ended November 2, 2024, totaled $565.6 million, with fiscal 2024 expected to reach$800 million[94][96] - Share repurchases during the 39 weeks ended November 2, 2024, totaled $170.3 million, with$609.3 million remaining under the repurchase program[97] - Dividends paid during the 39 weeks ended November 2, 2024, amounted to $273.1 million, with a quarterly dividend of$1.10 per share declared[99] - Net cash provided by operating activities decreased by $84.4 million to$680.3 million, primarily due to changes in inventory levels and accounts payable[104] Inventory and Margin - Inventory shrink as a percentage of net sales decreased 27 basis points during the year-to-date period compared to 2023[54] - The company expects gross margin to expand year-over-year in 2024, with selling, general, and administrative expenses leveraging as a percentage of net sales[55] Business Optimization and Charges - The company completed a business optimization in 2023, resulting in $72.8 million of charges within selling, general, and administrative expenses[55] Dividends and Shareholder Returns - Declared and paid a quarterly cash dividend of$1.10 per share of common stock and Class B common stock[66] - The company anticipates returning capital to stockholders through dividends and share repurchases[44] Store Count and Expansion - Total stores increased to 864 as of November 2, 2024, compared to 869 as of October 28, 2023, with 17 DICK'S House of Sport stores and 22 DICK'S Field House stores[67] Other Income and Expenses - Other income totaled $24.0 million in Q3 2024, including a$15.5 million decrease in deferred compensation plan investment expenses[79] - Other income totaled $75.1 million, including a$19.8 million decrease in deferred compensation plan investment expenses[87] Cash and Credit Facilities - Cash on hand as of November 2, 2024, was $1.46 billion, with a$1.6 billion unsecured credit facility available[89] Future Outlook - The company expects full-year 2024 comparable sales growth to be in the range of 3.6% to 4.2% and earnings per diluted share to be in the range of $13.65 to$13.95[52]