DKS
$36.65
Dick's Sporting Goods
($.11)
(.30%)
Earnings Details
4th Quarter January 2019
Tuesday, March 12, 2019 7:30:00 AM
Tweet Share Watch
Summary

Dick's Sporting Goods Misses

Dick's Sporting Goods (DKS) reported 4th Quarter January 2019 earnings of $1.07 per share on revenue of $2.5 billion. The consensus earnings estimate was $1.07 per share on revenue of $2.5 billion. The Earnings Whisper number was $1.09 per share. Revenue fell 6.5% compared to the same quarter a year ago.

The company said it expects fiscal 2020 earnings of $3.15 to $3.35 per share. The current consensus earnings estimate is $3.38 per share for the year ending January 31, 2020.

Dick' Sporting Goods, Inc., is an authentic full-line sporting goods retailer offering a assortment of brand name sporting goods equipment, apparel, and footwear in a specialty store environment.

Results
Reported Earnings
$1.07
Earnings Whisper
$1.09
Consensus Estimate
$1.07
Reported Revenue
$2.49 Bil
Revenue Estimate
$2.48 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

DICK'S Sporting Goods Reports Full Year 2018 Earnings Per Diluted Share of $3.24, Near the High-End of Its Guidance of $3.15 to 3.25

PITTSBURGH, March 12, 2019 /PRNewswire/ -- DICK'S Sporting Goods, Inc. (NYSE: DKS), the largest U.S. based full-line omni-channel sporting goods retailer, today reported sales and earnings results for the fourth quarter and full year ended February 2, 2019.

DICK'S Sporting Goods Logo. (PRNewsfoto/DICK'S Sporting Goods, Inc.)

Fourth Quarter Results (13 weeks compared to 14 weeks last year)

The Company reported consolidated net income for the fourth quarter ended February 2, 2019 of $102.6 million, or $1.07 per diluted share, which was negatively impacted by approximately $0.08 per diluted share versus last year due to the shifted calendar. The Company reported consolidated net income for the fourth quarter ended February 3, 2018 of $116.0 million, or $1.11 per diluted share, which was positively impacted by approximately $0.09 per diluted share for the 14th week.

On a non-GAAP basis, the Company reported consolidated net income for the fourth quarter ended February 3, 2018 of $127.3 million, or $1.22 per diluted share, which was positively impacted by approximately $0.09 per diluted share for the 14th week. GAAP to non-GAAP reconciliations are included in a table later in the release under the heading "GAAP to Non-GAAP Reconciliations."

Adjusted for the calendar shift due to the 53rd week in fiscal 2017, which the Company believes is the best view of its business, consolidated same store sales decreased 2.2% on a 13-week to 13-week comparable basis. Net sales for the fourth quarter of 2018 decreased 6.5% to approximately $2.49 billion. Based on an unshifted calendar, consolidated same store sales for the fourth quarter decreased 3.7%.  Fourth quarter 2017 consolidated same store sales decreased 2.0%.

"We are pleased with our fourth quarter results. Our core business performed quite well, as our athletes have responded positively to many of our initiatives, resulting in comp sales gains across key categories and double digit percentage increases in eCommerce and private brand sales," said Edward W. Stack, Chairman and Chief Executive Officer. "For 2018, we delivered earnings near the high end of our expectations, which represents an 8% increase over last year. This achievement is the direct result of the hard work and commitment from our over 40,000 talented teammates."

Mr. Stack continued, "As we look forward to 2019, we are enthusiastic about our business and expect to return to positive comp sales beginning in the second quarter. We will continue to make significant investments in our business to meet our athletes' ever-changing needs and grow our leadership position in the industry."

"In 2019, we are focused on enhancing our athletes' experience in our stores, improving our eCommerce fulfillment capabilities and elevating our technology talent and capabilities," added Lauren R. Hobart, President of DICK'S Sporting Goods. "This is an exciting time for our Company as we remain focused on building the best omni-channel experience in sporting goods."

Omni-channel Development

Adjusted for the calendar shift due to the 53rd week in 2017, eCommerce sales for the fourth quarter of 2018 increased approximately 17%.  eCommerce penetration for the fourth quarter of 2018 was approximately 23% of total net sales, compared to approximately 19% during the fourth quarter of 2017.

In the fourth quarter, the Company closed three DICK'S Sporting Goods stores. As of February 2, 2019, the Company operated 729 DICK'S Sporting Goods stores in 47 states, with approximately 38.6 million square feet, 94 Golf Galaxy stores in 32 states, with approximately 1.9 million square feet and 35 Field & Stream stores in 16 states, with approximately 1.7 million square feet.

Store count, square footage and new stores are listed in a table later in the release under the heading "Store Count and Square Footage."

Balance Sheet

The Company ended the fourth quarter of 2018 with approximately $114 million in cash and cash equivalents and no outstanding borrowings under its revolving credit facility. Over the course of the last 12 months, the Company continued to invest in omni-channel growth, while returning over $412 million to shareholders through share repurchases and quarterly dividends.

Total inventory increased 6.6% at the end of the fourth quarter of 2018 as compared to the end of the fourth quarter of 2017. This planned increase was due primarily to strategic investments to support key growth categories.

Full Year Results (52 weeks compared to 53 weeks last year)

The Company reported consolidated net income for the 52 weeks ended February 2, 2019 of $319.9 million, or $3.24 per diluted share. The Company reported consolidated net income for the 53 weeks ended February 3, 2018 of $323.4 million, or $3.01 per diluted share, which included approximately $0.09 per diluted share for the 53rd week.

On a non-GAAP basis, the Company reported consolidated net income for the 53 weeks ended February 3, 2018 of $324.3 million, or $3.01 per diluted share, which also included approximately $0.09 per diluted share for the 53rd week. GAAP to non-GAAP reconciliations are included in a table later in the release under the heading "GAAP to Non-GAAP Reconciliations."

Adjusted for the calendar shift due to the 53rd week in 2017 consolidated same store sales decreased 3.1% on a 52-week to 52-week comparable basis. Net sales for the 52 weeks ended February 2, 2019 decreased 1.8% from last year's 53 week period to approximately $8.44 billion. Fiscal 2017 consolidated same store sales decreased 0.3% on a 52-week to 52-week comparative basis.

Capital Allocation

On February 22, 2019, the Company's Board of Directors authorized and declared a quarterly dividend in the amount of $0.275 per share on the Company's Common Stock and Class B Common Stock. The dividend is payable in cash on March 29, 2019 to stockholders of record at the close of business on March 15, 2019. This dividend represents an increase of approximately 22% over the Company's previous quarterly per share amount and is equivalent to an annualized rate of $1.10 per share.

During the fourth quarter of 2018, the Company repurchased 957,000 shares of its common stock at an average cost of $35.23 per share, for a total cost of $33.7 million. In total for 2018, the Company repurchased approximately 9.6 million shares of its common stock at an average cost of $33.78 per share, for a total cost of $323.4 million, and has approximately $433 million remaining under its authorization that extends through 2021.


Full Year 2019 Outlook

  • Based on an estimated 95 million diluted shares outstanding, the Company currently projects earnings per diluted share to be approximately $3.15 to 3.35, which includes approximately $30 million, or $0.23 per diluted share, of net investments in business transformation initiatives. The Company's earnings per diluted share guidance includes the expectation of share repurchases to fully offset dilution in 2019. The Company reported earnings per diluted share of $3.24 for the 52 weeks ended February 2, 2019.
  • Consolidated same store sales are currently expected to be approximately flat to an increase of 2%, compared to a 3.1% decrease in 2018. The Company expects to deliver positive consolidated same store sales beginning in the second quarter.
  • The Company expects to open seven new DICK'S Sporting Goods stores and relocate three DICK'S Sporting Goods stores in 2019. The Company also expects to open two new Golf Galaxy stores and relocate one Golf Galaxy store in 2019. Six of the new stores are expected to open during the third quarter.
  • In 2019, the Company anticipates capital expenditures to be approximately $230 million on a gross basis and approximately $200 million on a net basis. In 2018, capital expenditures were $198 million on a gross basis and $170 million on a net basis.

Conference Call Info

The Company will host a conference call today at 10:00 a.m. Eastern Time to discuss the fourth quarter and full year results. Investors will have the opportunity to listen to the earnings conference call over the internet through the Company's website located at investors.DICKS.com. To listen to the live call, please go to the website at least fifteen minutes early to register, download, and install any necessary audio software.  For those who cannot listen to the live webcast, it will be archived on the Company's website for approximately twelve months.

Non-GAAP Financial Measures

In addition to reporting the Company's financial results in accordance with generally accepted accounting principles ("GAAP"), the Company reports certain financial results that differ from what is reported under GAAP. These non-GAAP financial measures include consolidated non-GAAP net income and non-GAAP earnings per diluted share, which management believes provides investors with useful supplemental information to evaluate the Company's ongoing operations and to compare with past and future periods. Management also uses certain non-GAAP measures internally for forecasting, budgeting, and measuring its operating performance. These measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies. A reconciliation of the Company's non-GAAP measures to the most directly comparable GAAP financial measures are provided below and on the Company's website at investors.DICKS.com.

Forward-Looking Statements Involving Known and Unknown Risks and Uncertainties

This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and change based on various important factors, many of which may be beyond our control. Our future performance and actual results may differ materially from those expressed or implied in such forward-looking statements. Forward-looking statements should not be relied upon by investors as a prediction of actual results. Forward-looking statements include statements regarding, among other things, the Company's future performance, including 2019 outlook for earnings and sales; our expectation that we will deliver positive comp sales beginning in the second quarter; our investments in business transformation initiatives; anticipated store openings and store relocations; capital expenditures; and share repurchases.

Factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements include, but are not limited to: changes in consumer discretionary spending; our eCommerce platform not producing the anticipated benefits within the expected time-frame or at all; risks relating to our private brand offerings and new retail concepts; the investments in business transformation initiatives not producing the anticipated benefits within the expected time-frame or at all; the amount that we devote to strategic investments and the timing and success of those investments; the integration of strategic acquisitions being more difficult, time-consuming, or costly than expected; inventory turn; changes in the competitive market and competition amongst retailers, including an increase in promotional activity; changes in consumer demand or shopping patterns and our ability to identify new trends and have the right trending products in our stores and on our website; changes in existing tax, labor and other laws and regulations, including those changing tax rates and imposing new taxes and surcharges; limitations on the availability of attractive retail store sites; omni-channel growth; unauthorized disclosure of sensitive or confidential customer information; website downtime, disruptions or other problems with our eCommerce platform, including interruptions, delays or downtime caused by high volumes of users or transactions, deficiencies in design or implementation, or platform enhancements; disruptions or other problems with our information systems; factors affecting our vendors, including supply chain and currency risks; talent needs and the loss of Edward W. Stack, our Chairman and Chief Executive Officer; developments with sports leagues, professional athletes or sports superstars; weather-related disruptions and seasonality of our business; and risks associated with being a controlled company.

For additional information on these and other factors that could affect our actual results, see our risk factors, which may be amended from time to time, set forth in our filings with the Securities and Exchange Commission ("SEC"), including our most recent Annual Report filed with the SEC on March 30, 2018 and our Quarterly Report filed with the SEC on November 29, 2018. The Company disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation. Forward-looking statements included in this release are made as of the date of this release.

About DICK'S Sporting Goods, Inc.

Founded in 1948, DICK'S Sporting Goods, Inc. is a leading omni-channel sporting goods retailer offering an extensive assortment of authentic, high-quality sports equipment, apparel, footwear and accessories. As of February 2, 2019, the Company operated  729 DICK'S Sporting Goods locations across the United States, serving and inspiring athletes and outdoor enthusiasts to achieve their personal best through a blend of dedicated teammates, in-store services and unique specialty shop-in-shops dedicated to Team Sports, Athletic Apparel, Golf, Lodge/Outdoor, Fitness and Footwear.

Headquartered in Pittsburgh, PA, DICK'S also owns and operates Golf Galaxy and Field & Stream specialty stores, as well as DICK'S Team Sports HQ, an all-in-one youth sports digital platform offering scheduling, communications and live scorekeeping through its GameChanger mobile apps, free league management services, custom uniforms and fan wear and access to donations and sponsorships. DICK'S offers its products through a content-rich eCommerce platform that is integrated with its store network and provides customers with the convenience and expertise of a 24-hour storefront.  For more information, visit the Investor Relations page at dicks.com.

Contacts:

Investor Relations:
Nate Gilch, Director of Investor Relations
DICK'S Sporting Goods, Inc.
investors@dcsg.com 
(724) 273-3400

Media Relations:
(724) 273-5552 or press@dcsg.com

 

 

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)




13 Weeks Ended


14 Weeks Ended



February 2,
 2019


% of

Sales


February 3,
 2018


% of

Sales (2)










Net sales


$

2,492,090



100.00

%


$

2,664,122



100.00

%

Cost of goods sold, including occupancy and 
   distribution costs (1)


1,797,511



72.13



1,888,269



70.88











GROSS PROFIT


694,579



27.87



775,853



29.12











Selling, general and administrative expenses


552,232



22.16



596,856



22.40


Pre-opening expenses


338



0.01



682



0.03











INCOME FROM OPERATIONS


142,009



5.70



178,315



6.69











Interest expense


1,937



0.08



1,728



0.06


Other expense (income)


3,798



0.15



(3,694)



(0.14)











INCOME BEFORE INCOME TAXES


136,274



5.47



180,281



6.77











Provision for income taxes


33,719



1.35



64,330



2.41











NET INCOME


$

102,555



4.12

%


$

115,951



4.35

%










EARNINGS PER COMMON SHARE:









Basic


$

1.09





$

1.11




Diluted


$

1.07





$

1.11













WEIGHTED AVERAGE COMMON SHARES
   OUTSTANDING:









Basic


94,193





104,052




Diluted


95,490





104,669













Cash dividend declared per share


$

0.225





$

0.170














(1)

Cost of goods sold includes: the cost of merchandise (inclusive of vendor allowances, inventory shrinkage and inventory write-downs for the lower of cost and net realizable value); freight; distribution; shipping; and store occupancy costs. The Company defines merchandise margin as net sales less the cost of merchandise sold.



(2)

Column does not add due to rounding

 

 

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)




52 Weeks Ended


53 Weeks Ended



February 2,
 2019


% of

Sales


February 3,
 2018


% of

Sales (2)










Net sales


$

8,436,570



100.00

%


$

8,590,472



100.00

%

Cost of goods sold, including occupancy and
   distribution costs (1)


5,998,788



71.10



6,101,412



71.03











GROSS PROFIT


2,437,782



28.90



2,489,060



28.97











Selling, general and administrative expenses


1,986,576



23.55



1,982,363



23.08


Pre-opening expenses


6,473



0.08



29,123



0.34











INCOME FROM OPERATIONS


444,733



5.27



477,574



5.56











Interest expense


10,248



0.12



8,047



0.09


Other expense (income)


2,565



0.03



(31,810)



(0.37)











INCOME BEFORE INCOME TAXES


431,920



5.12



501,337



5.84











Provision for income taxes


112,056



1.33



177,892



2.07











NET INCOME


$

319,864



3.79

%


$

323,445



3.77

%










EARNINGS PER COMMON SHARE:









Basic


$

3.27





$

3.02




Diluted


$

3.24





$

3.01













WEIGHTED AVERAGE COMMON SHARES
   OUTSTANDING:









Basic


97,743





106,977




Diluted


98,781





107,586













Cash dividends declared per share


$

0.90





$

0.68














(1)

Cost of goods sold includes: the cost of merchandise (inclusive of vendor allowances, inventory shrinkage and inventory write-downs for the lower of cost and net realizable value); freight; distribution; shipping; and store occupancy costs. The Company defines merchandise margin as net sales less the cost of merchandise sold.



(2)

Column does not add due to rounding

 

 

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(Dollars in thousands)




February 2,
 2019


February 3,
 2018

ASSETS





CURRENT ASSETS:





Cash and cash equivalents


$

113,653



$

101,253


Accounts receivable, net


37,970



60,107


Income taxes receivable


6,135



4,433


Inventories, net


1,824,696



1,711,103


Prepaid expenses and other current assets


139,944



129,189


Total current assets


2,122,398



2,006,085







Property and equipment, net


1,565,271



1,677,340


Intangible assets, net


130,166



136,587


Goodwill


250,476



250,476


Other assets:





Deferred income taxes


13,243



13,639


Other


105,595



119,812


Total other assets


118,838



133,451


TOTAL ASSETS


$

4,187,149



$

4,203,939







LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES:





Accounts payable


$

889,908



$

843,075


Accrued expenses


364,342



354,181


Deferred revenue and other liabilities


224,984



212,080


Income taxes payable


20,142



10,476


Current portion of other long-term debt and leasing obligations


5,263



5,202


Total current liabilities


1,504,639



1,425,014


LONG-TERM LIABILITIES:





Other long-term debt and leasing obligations


54,781



60,084


Deferred income taxes


11,776



10,232


Deferred rent and other liabilities


711,792



767,108


Total long-term liabilities


778,349



837,424


COMMITMENTS AND CONTINGENCIES





STOCKHOLDERS' EQUITY:





Common stock


693



783


Class B common stock


245



247


Additional paid-in capital


1,214,287



1,177,778


Retained earnings


2,455,192



2,205,651


Accumulated other comprehensive loss


(120)



(78)


Treasury stock, at cost


(1,766,136)



(1,442,880)


Total stockholders' equity


1,904,161



1,941,501


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$

4,187,149



$

4,203,939








 

 

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
(Dollars in thousands)




Fiscal Year Ended



February 2,
 2019


February 3,
 2018

CASH FLOWS FROM OPERATING ACTIVITIES:





Net income


$

319,864



$

323,445


Adjustments to reconcile net income to net cash provided by operating activities:





Depreciation and amortization


243,830



237,651


Deferred income taxes


(5,258)



42,453


Stock-based compensation


41,941



36,239


Other non-cash items


934



5,327


Changes in assets and liabilities:





Accounts receivable


16,215



(208)


Inventories


(94,131)



(71,751)


Prepaid expenses and other assets


10,980



(29,072)


Accounts payable


125,632



124,628


Accrued expenses


21,372



13,597


Income taxes payable / receivable


7,964



(39,347)


Deferred construction allowances


27,730



101,712


Deferred revenue and other liabilities


(4,318)



1,636


Net cash provided by operating activities


712,755



746,310


CASH FLOWS FROM INVESTING ACTIVITIES:





Capital expenditures


(198,219)



(474,347)


Acquisitions, net of cash acquired




(8,957)


Deposits and purchases of other assets




(2,344)


Net cash used in investing activities


(198,219)



(485,648)


CASH FLOWS FROM FINANCING ACTIVITIES:





Revolving credit borrowings


1,875,400



2,742,800


Revolving credit repayments


(1,875,400)



(2,742,800)


Proceeds from term loan




62,492


Payments on other long-term debt and leasing obligations


(5,242)



(2,531)


Construction allowance receipts





Proceeds from exercise of stock options




16,558


Minimum tax withholding requirements


(5,428)



(5,841)


Cash paid for treasury stock


(323,352)



(284,583)


Cash dividends paid to stockholders


(89,273)



(73,099)


Decrease in bank overdraft


(78,799)



(37,236)


Net cash used in financing activities


(502,094)



(324,240)


EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS


(42)



54


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS


12,400



(63,524)


CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD


101,253



164,777


CASH AND CASH EQUIVALENTS, END OF PERIOD


$

113,653



$

101,253


 

Store Count and Square Footage

The following represents a reconciliation of beginning and ending stores and square footage for the periods indicated:

Store Count:



Fiscal 2018


Fiscal 2017



DICK'S
Sporting
Goods
(1)


Specialty
Concept
Stores
(1)


Total


DICK'S
Sporting
Goods
(1)


Specialty
Concept
Stores
(1)


Total

Beginning stores


716


129


845


676


121


797

Q1 New stores


8



8


15


10


25

Q2 New stores


5



5


13



13

Q3 New stores


6



6


15


6


21

Q4 New stores







Closed stores


6



6


3


8


11

Ending stores


729


129


858


716


129


845














Relocated stores


4


1


5


7


1


8














 

Square Footage:
(in millions)




DICK'S
Sporting
Goods
(1)


Specialty
Concept
Stores
(1)


Total(2)

Q1 2017



36.8


3.5


40.3

Q2 2017



37.4


3.5


40.9

Q3 2017



38.2


3.7


41.9

Q4 2017



38.0


3.7


41.7

Q1 2018



38.4


3.7


42.1

Q2 2018



38.7


3.7


42.3

Q3 2018



38.8


3.6


42.4

Q4 2018



38.6


3.6


42.2


(1)

Includes the Company's Golf Galaxy, Field & Stream and other specialty concept stores. In some markets we operate DICK'S Sporting Goods stores adjacent to our specialty concept stores on the same property with a pass-through for customers. We refer to this format as a "combo store" and include combo store openings within both the DICK'S Sporting Goods and specialty concept store reconciliations, as applicable. As of February 2, 2019, the Company operated 23 combo stores.

(2)

Column may not add due to rounding.

 

 


DICK'S SPORTING GOODS, INC.
GAAP to NON-GAAP RECONCILIATIONS - UNAUDITED
(Dollars in thousands, except per share amounts)



14 Weeks Ended February 3, 2018








Cost of
goods sold

Selling,
general and
administrative
expenses

Income
before
income
taxes

Net
income (8)

Earnings per
diluted share

GAAP Basis

$

1,888,269


$

596,856


$

180,281


$

115,951


$

1.11


% of Net Sales

70.88

%

22.40

%

6.77

%

4.35

%


Loyalty program enhancement costs (5)

(11,478)



11,478


7,231



Litigation contingency (6)


(6,592)


6,592


4,153



Non-GAAP Basis

$

1,876,791


$

590,264


$

198,351


$

127,335


$

1.22


% of Net Sales

70.45

%

22.16

%

7.45

%

4.78

%


 


53 Weeks Ended February 3, 2018










Cost of
goods sold

Selling,
general and
administrative
expenses

Pre-
opening
expenses

Other
income

Income
before
income
taxes

Net
income
 (8)

Earnings
per
diluted
share

GAAP Basis

$

6,101,412


$

1,982,363


$

29,123


$

(31,810)


$

501,337


$

323,445


$

3.01


% of Net Sales

71.03

%

23.08

%

0.34

%

(0.37)

%

5.84

%

3.77

%


Corporate
  restructuring
  charge (1)


(7,077)




7,077


4,388



TSA conversion
  costs (2)



(3,474)



3,474


2,154



Contract
  termination
  payment (3)




12,000


(12,000)


(12,000)



Sales tax refund (4)




8,104


(8,104)


(5,024)



Loyalty program
  enhancement
  costs (5)

(11,478)





11,478


7,231



Litigation
  contingency (6)


(6,592)




6,592


4,153



Tax Act impact (7)






(24)



Non-GAAP Basis

$

6,089,934


$

1,968,694


$

25,649


$

(11,706)


$

509,854


$

324,323


$

3.01


% of Net Sales

70.89

%

22.92

%

0.30

%

(0.14)

%

5.94

%

3.78

%



(1)

Severance, other employee-related costs and asset write-downs related to corporate restructuring.

(2)

Costs related to converting former TSA stores.

(3)

Contract termination payment. There was no related tax expense as the Company utilized net capital loss carryforwards that were
previously subject to a valuation allowance.

(4)

Multi-year sales tax refund.

(5)

Transition costs incurred to enhance the Company's Scorecard loyalty program.

(6)

Costs related to a litigation contingency.

(7)

Change to blended tax rate for adjustments recorded prior to enactment of the Tax Act.

(8)

The provision for income taxes for non-GAAP adjustments was calculated at the Company's approximate blended tax rate,
unless otherwise noted.

 

 

Reconciliation of Gross Capital Expenditures to Net Capital Expenditures

The following table represents a reconciliation of the Company's gross capital expenditures to its capital expenditures, net of tenant allowances.



Fiscal Year Ended



February 2,
 2019


February 3,
 2018



(dollars in thousands)

Gross capital expenditures


$

(198,219)



$

(474,347)


Proceeds from sale-leaseback transactions





Deferred construction allowances


27,730



101,712


Construction allowance receipts





Net capital expenditures


$

(170,489)



$

(372,635)



 

Fiscal 2017 Net Sales Adjusted for the 53rd Week

Net sales adjusted for the extra week during the 14 and 53 weeks ended February 3, 2018 is presented below to illustrate the impact of the extra week on reported net sales in comparison to reported results for the 13 and 52 weeks ended February 2, 2019.



Period Ended February 3, 2018



14 Weeks


53 Weeks



(dollars in thousands)

Net sales


$

2,664,122



$

8,590,472


Less: 53rd week net sales


(105,425)



(105,425)


Adjusted net sales


$

2,558,697



$

8,485,047







 

 

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SOURCE DICK'S Sporting Goods, Inc.