PR Newswire | Nov 23, 2021 07:31AM EST

12.2% Increase in Same Store Sales and Raises Full Year Guidance

11/23 06:30 CST

DICK'S Sporting Goods Reports Record Third Quarter Sales and Earnings; Delivers 12.2% Increase in Same Store Sales and Raises Full Year Guidance- Consolidated same store sales for the third quarter increased 12.2% on top of a 23.2% increase in the third quarter of 2020 and a 6.0% increase in the third quarter of 2019- Company delivered third quarter 2021 earnings per diluted share of $2.78 and non-GAAP earnings per diluted share of $3.19, up 51% and 59% respectively versus earnings per diluted share of $1.84 and non-GAAP earnings per diluted share of $2.01 during the third quarter of 2020- Company raises its full year 2021 earnings per diluted share guidance to $12.88 to 13.06 and raises its full year 2021 non-GAAP earnings per diluted share guidance to $14.60 to 14.80 PITTSBURGH, Nov. 23, 2021

PITTSBURGH, Nov. 23, 2021 /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 third quarter ended October 30, 2021.

Third Quarter Results

Net sales for the third quarter of 2021 were $2.75 billion, an increase of 13.9% compared to the third quarter of 2020 and a 40.0% increase compared to the third quarter of 2019. Consolidated same store sales for the third quarter of 2021 increased 12.2%, which followed consolidated same store sales increases of 23.2% in the third quarter of 2020 and 6.0% in the third quarter of 2019. eCommerce sales increased 97% compared to the third quarter of 2019 and 1% compared to the third quarter of 2020. eCommerce penetration has grown from 13% of total net sales in the third quarter of 2019 to 19% for the third quarter of 2021. eCommerce penetration was approximately 21% in the third quarter of 2020.

Driven by strong sales and gross margin rate expansion, the Company reported consolidated net income for the third quarter ended October 30, 2021 of $316.5 million, or $2.78 per diluted share. The Company reported consolidated net income for the third quarter ended October 31, 2020 of $177.2 million, or $1.84 per diluted share, which included approximately $48 million of pre-tax expenses in response to COVID-19. The Company reported consolidated net income for the third quarter ended November 2, 2019 of $57.6 million, or $0.66 per diluted share.

On a non-GAAP basis, the Company reported consolidated net income for the quarter ended October 30, 2021 of $322.2 million, or $3.19 per diluted share, compared to consolidated net income of $182.2 million, or $2.01 per diluted share, for the quarter ended October 31, 2020. For the quarters ended October 30, 2021 and October 31, 2020, non-GAAP consolidated net income excluded non-cash amortization of the debt discount associated with the Company's convertible senior notes and included the share impact of the convertible note hedge purchased by the Company, which is antidilutive for GAAP purposes. For the third quarter ended November 2, 2019, the Company reported non-GAAP consolidated net income of $44.8 million, or $0.52 per diluted share. The GAAP to non-GAAP reconciliations are included in a table later in the release under the heading "GAAP to Non-GAAP Reconciliations."

"Our strategies continue to work as we reimagine the athlete experience in our core business and with new concepts. As we said before, we believe this will be the most transformational year in our history, and we expect to continue this transformation into 2022. I couldn't be more excited about the future of DICK'S Sporting Goods," said Ed Stack, Executive Chairman.

"We are extremely pleased to announce a record third quarter in which we delivered significant sales and earnings growth over both last year and 2019. Consumer demand remained strong, and our differentiated product assortment continued to drive exceptional sales and merchandise margin momentum. I'd like to thank all of our teammates for their hard work and commitment to DICK'S Sporting Goods, which helped make this performance possible," said Lauren Hobart, President and Chief Executive Officer. "Our fourth quarter is off to a strong start, and we are pleased to increase our full year outlook for the third time this year. Looking ahead, we remain very confident in the longer-term prospects of our business."

Balance Sheet

The Company ended the third quarter of 2021 with approximately $1.37 billion in cash and cash equivalents and no outstanding borrowings under its $1.855 billion revolving credit facility.

Total inventory increased 7.3% at the end of the third quarter of 2021 compared to the end of the third quarter of 2020.

Year-to-Date Results

Net sales for the 39 weeks ended October 30, 2021 were $8.94 billion, an increase of 38.4% compared to the 39 weeks ended October 31, 2020 and a 45.6% increase compared to the 39 weeks ended November 2, 2019. Consolidated same store sales for the 39 weeks ended October 30, 2021 increased 36.6% compared to the 2020 period, which followed a consolidated same store sales increase of 5.8% for the 2020 period and a 3.1% increase for the 2019 period. eCommerce sales increased 115% compared to the 39 weeks ended November 2, 2019, and as expected, eCommerce sales decreased 8% compared to the 39 weeks ended October 31, 2020, which included a period of temporary store closures in March, April and May. eCommerce penetration has grown from 13% of total net sales in the 2019 period to 19% in the 2021 period. eCommerce penetration was approximately 28% in the 39 weeks ended October 31, 2020.

Driven by strong sales and gross margin rate expansion, the Company reported consolidated net income for the 39 weeks ended October 30, 2021 of $1.17 billion, or $10.70 per diluted share, compared to consolidated net income for the 39 weeks ended October 31, 2020 of $310.6 million, or $3.44 per diluted share. The Company incurred approximately $15 million of pre-tax incremental safety costs in response to COVID-19 during the 39 weeks ended October 30, 2021. During last year's period, the Company incurred approximately $124 million of pre-tax expenses in response to COVID-19. The Company reported consolidated net income for the 39 weeks ended November 2, 2019 of $227.6 million, or $2.53 per diluted share.

On a non-GAAP basis, the Company reported consolidated net income of $1.19 billion, or $12.06 per diluted share, for the 39 weeks ended October 30, 2021, and consolidated net income of $321.3 million, or $3.65 per diluted share, for the 39 weeks ended October 31, 2020. For the periods ended October 30, 2021 and October 31, 2020, non-GAAP consolidated net income excluded non-cash amortization of the debt discount associated with the Company's convertible senior notes and included the share impact of the convertible note hedge purchased by the Company, which is antidilutive for GAAP purposes. For the 39 weeks ended November 2, 2019, the Company reported non-GAAP consolidated net income of $215.8 million, or $2.39 per diluted share. The GAAP to non-GAAP reconciliations are included in a table later in the release under the heading "GAAP to Non-GAAP Reconciliations."

Capital Allocation

On November 22, 2021, the Company's Board of Directors authorized and declared a quarterly dividend in the amount of $0.4375 per share on the Company's Common Stock and Class B Common Stock. The dividend is payable in cash on December 29, 2021 to stockholders of record at the close of business on December 10, 2021.

The Company paid over $500 million in dividends to stockholders during the 13 weeks ended October 30, 2021, which included the previously announced special dividend of $5.50 per share on the Company's Common Stock and Class B Common Stock.

During the third quarter of 2021, the Company repurchased 2.17 million shares of its common stock at an average price of $125.80 per share, for a total cost of $273.4 million, under its share repurchase program. For the 39 weeks ended October 30, 2021, the Company repurchased 4.0 million shares of common stock at an average price of $106.21 per share, for a total cost of $426.1 million. The Company has $605.1 million remaining under its authorization that extends through June 2024.

For the 39 weeks ended October 30, 2021, capital expenditures totaled $231.1 million on a gross basis, or $203.4 million net of construction allowances provided by landlords. For the 39 weeks ended October 31, 2020, capital expenditures totaled $156.4 million on a gross basis, or $114.1 million net of construction allowances provided by landlords.

Full Year 2021 Outlook

The Company's Full Year Outlook for 2021 is presented below:

2021 Outlook

Low End High End Midpoint % Change

(in millions, except per share amounts) 2019 2020 2021 (E) vs 2019 vs 2020

Net Sales $8,751 $9,584 $12,120 $12,190 39 % 27 %

Consolidated same store sales 3.7 %9.9 %24.0 %25.0 %



Income before income taxes $408 $712 $1,860 $1,890 360 % 163 %

% of Net Sales 4.7 %7.4 %15.3 %15.5 %

Income before income taxes - non-GAAP $440 $733 $1,890 $1,920 333 % 160 %

% of Net Sales - non-GAAP 5.0 %7.6 %15.6 %15.8 %



Earnings per diluted share $3.34 $5.72 $12.88 $13.06 288 % 127 %

Earnings per diluted share - non-GAAP $3.69 $6.12 $14.60 $14.80 298 % 140 %

Weighted average diluted shares 89 93 110.5 110.5

Weighted average diluted shares - non-GAAP89 89 99.0 99.0



Gross capital expenditures $217 $224 $370 $395

Net capital expenditures $180 $167 $300 $325

* Due to the uneven nature of sales and earnings in 2020, the Company planned 2021 off of a 2019 baseline and for the same reason believes it is important to compare 2021 against both 2019 and 2020. * The Company's non-GAAP outlook for 2021 and its non-GAAP results for 2020 exclude amortization of the non-cash debt discount on the Company's convertible senior notes and diluted shares that are designed to be offset at settlement by shares delivered from the convertible note hedge purchased by the Company. Non-GAAP results for 2019 exclude hunt restructuring charges, a gain on the sale of subsidiaries, non-cash asset impairments and the favorable settlement of a litigation contingency. * As a result of actions taken to support its teammates as well as impacts from its temporary store closures in 2020, the Company incurred approximately $175 million of pre-tax incremental teammate compensation and safety costs. Through the first nine months of fiscal 2021, the Company has incurred approximately $15 million of COVID-related safety costs.

Conference Call Info

The Company will host a conference call today at 10:00 a.m. Eastern Time to discuss the third quarter 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, non-GAAP earnings per diluted share, non-GAAP income before income taxes, non-GAAP diluted shares outstanding, and net capital expenditures, 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 believes that excluding non-cash debt discount amortization from its convertible senior notes and including the share impact from the convertible note hedge is useful to investors because it provides a more complete view of the economics of the transaction. 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.

Fiscal 2021 Consolidated Same Store Sales

Consolidated same store sales include stores that were temporarily closed during fiscal 2020 as a result of the COVID-19 pandemic. The method of calculating consolidated same store sales varies across the retail industry, including the treatment of temporary store closures as a result of COVID-19. Accordingly, our method of calculating this metric may not be the same as other retailers' methods. For additional information on consolidated same store sales, please see our most recent Annual Report on Form 10-K for the fiscal year ended January 30, 2021, filed with the Securities and Exchange Commission on March 24, 2021.

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 the Company's control. The Company's 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 2021 outlook for earnings and sales; capital expenditures; share repurchases and dividends; and anticipated store openings, relocations, and closures.

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: the impact on our business, operations and financial results due to the duration and scope of the COVID-19 pandemic, including the potential impact due to disruptions in our vendors' supply chains and due to restrictions imposed by federal, state, and local governments in response to increases in the number of COVID-19 cases in areas in which we operate; changes in consumer discretionary spending; the extent to which changes in consumer demand due to the COVID-19 pandemic will continue and whether new trends will emerge after the impact of the COVID-19 pandemic subsides; store closures and other impacts to our business resulting from civil disturbances; investments in omni-channel growth not producing the anticipated benefits within the expected time-frame or at all; risks relating to private brands and new retail concepts; investments in business transformation initiatives not producing the anticipated benefits within the expected time-frame or at all; the amount devoted to strategic investments and the timing and success of those investments; 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 the ability to identify new trends and have the right trending products in stores and online; the impact of a high rate of inflation on our business; changes in existing tax, labor, foreign trade and other laws and regulations, including those imposing new taxes, surcharges, or tariffs; limitations on the availability of attractive retail store sites; unauthorized disclosure of sensitive or confidential customer information; website downtime, disruptions or other problems with the 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 information systems; increasing direct competition from vendors, and increasing product costs due to various reasons, including foreign trade issues, currency exchange rate fluctuations, and increasing prices for raw materials due to inflation; the loss of key personnel, including Edward W. Stack, Executive Chairman, or Lauren Hobart, President and Chief Executive Officer; developments with sports leagues, professional athletes or sports superstars, including disruptions and cancellations due to COVID-19; weather-related disruptions and seasonality of the Company's business; and risks associated with being a controlled company.

For additional information on these and other factors that could affect the Company's actual results, see the risk factors set forth in the Company's filings with the Securities and Exchange Commission ("SEC"), including the most recent Annual Report filed with the SEC on March 24, 2021 and our Quarterly Report filed with the SEC on August 25, 2021. 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 is a leading omni-channel sporting goods retailer offering an extensive assortment of authentic, high-quality sports equipment, apparel, footwear and accessories. As of October 30, 2021, the Company operated 734 DICK'S Sporting Goods locations across the United States, serving and inspiring athletes and outdoor enthusiasts to achieve their personal best through a combination of its dedicated teammates, in-store services and unique specialty shop-in-shops dedicated to Team Sports, Athletic Apparel, Golf, Outdoor, Fitness and Footwear.

Headquartered in Pittsburgh, DICK'S also owns and operates Golf Galaxy, Field & Stream and Public Lands specialty stores, as well as GameChanger, a youth sports mobile app for scheduling, communications, live scorekeeping and video streaming. DICK'S offers its products through a dynamic eCommerce platform that is integrated with its store network and provides athletes 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, Senior Director of Investor RelationsDICK'S Sporting Goods, Inc.investors@dcsg.com(724) 273-3400

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

Category: Earnings

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)



13 Weeks Ended

October 30, % of October 31, % of November 2, % of 2021 2020 2019 ^(1) Sales Sales^(2) Sales^(2)



Net sales $ 2,747,647 100.00% $2,412,112100.00 % $1,962,204100.00 %

Cost of goods sold, including 1,691,071 61.55 1,569,938 65.09 1,381,562 70.41 occupancy and distribution costs



GROSS PROFIT 1,056,576 38.45 842,174 34.91 580,642 29.59



Selling, general and administrative631,943 23.00 591,117 24.51 531,704 27.10 expenses

Pre-opening expenses 4,765 0.17 4,964 0.21 3,313 0.17



INCOME FROM OPERATIONS 419,868 15.28 246,093 10.20 45,625 2.33



(Gain) Loss on sale of subsidiaries- - - - (33,779) (1.72)

Interest expense 13,789 0.50 12,769 0.53 4,278 0.22

Other (income) expense (1,748) (0.06) (3,746) (0.16) (2,020) (0.10)



INCOME BEFORE INCOME TAXES 407,827 14.84 237,070 9.83 77,146 3.93



Provision for income taxes 91,314 3.32 59,854 2.48 19,562 1.00



NET INCOME $ 316,513 11.52% $177,216 7.35 % $57,584 2.93 %



EARNINGS PER COMMON SHARE:

Basic $ 3.79 $2.10 $0.68

Diluted $ 2.78 $1.84 $0.66



WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic 83,537 84,422 85,048

Diluted 113,664 96,571 86,601





^(1) Due to the uneven nature of sales and earnings in 2020, the Company planned 2021 off of a 2019 baseline and believes it is important to compare 2021 against both 2019 and 2020.



^(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)



39 Weeks Ended

October 30, % of October 31, % of November 2, % of 2021 2020 2019 ^(1) Sales Sales Sales ^(2)



Net sales $8,941,208100.0%$6,458,712100.0%$6,142,093100.0 %

Cost of goods sold, including 5,488,928 61.39 4,460,336 69.06 4,320,571 70.34 occupancy and distribution costs



GROSS PROFIT 3,452,280 38.61 1,998,376 30.94 1,821,522 29.66



Selling, general and administrative expenses1,880,505 21.03 1,537,371 23.80 1,539,934 25.07

Pre-opening expenses 12,545 0.14 9,728 0.15 4,887 0.08



INCOME FROM OPERATIONS 1,559,230 17.44 451,277 6.99 276,701 4.50



(Gain) Loss on sale of subsidiaries - - - - (33,779) (0.55)

Interest expense 40,971 0.46 35,496 0.55 12,909 0.21

Other (income) expense (15,893) (0.18) (4,731) (0.07) (10,340) (0.17)



INCOME BEFORE INCOME TAXES 1,534,152 17.16 420,512 6.51 307,911 5.01



Provision for income taxes 360,374 4.03 109,875 1.70 80,268 1.31



NET INCOME $1,173,77813.13% $310,637 4.81% $227,643 3.71 %



EARNINGS PER COMMON SHARE:

Basic $13.93 $3.69 $2.57

Diluted $10.70 $3.44 $2.53



WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic 84,266 84,095 88,671

Diluted 109,648 90,430 90,130





^(1) Due to the uneven nature of sales and earnings in 2020, the Company planned 2021 off of a 2019 baseline and for the same reason believes it is important to compare 2021 against both 2019 and 2020.



^(2) Column does not add due to rounding



DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - UNAUDITED

(In thousands)



October 30, October 31, January 30, 2021 2020 2021

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $1,372,892$1,059,994$1,658,067

Accounts receivable, net 89,479 77,212 53,149

Income taxes receivable 683 5,453 6,396

Inventories, net 2,490,438 2,319,992 1,953,568

Prepaid expenses and other current assets 92,673 82,648 88,470

Total current assets 4,046,165 3,545,299 3,759,650



Property and equipment, net 1,314,567 1,336,676 1,300,265

Operating lease assets 2,070,135 2,177,006 2,149,913

Intangible assets, net 87,195 91,585 90,051

Goodwill 245,857 245,857 245,857

Deferred income taxes 42,862 27,717 51,475

Other assets 192,498 141,350 155,648

TOTAL ASSETS $7,999,279$7,565,490$7,752,859



LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable $1,399,716$1,394,904$1,258,093

Accrued expenses 522,010 449,304 518,134

Operating lease liabilities 478,674 474,803 472,670

Income taxes payable 28,430 24,805 40,997

Deferred revenue and other liabilities 239,472 193,956 260,304

Total current liabilities 2,668,302 2,537,772 2,550,198

LONG-TERM LIABILITIES:

Revolving credit borrowings - - -

Convertible senior notes due 2025 441,186 411,256 418,493

Long-term operating lease liabilities 2,135,515 2,310,318 2,259,308

Other long-term liabilities 223,459 184,505 185,326

Total long-term liabilities 2,800,160 2,906,079 2,863,127

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:

Common stock 586 608 612

Class B common stock 237 239 237

Additional paid-in capital 1,476,701 1,415,909 1,442,298

Retained earnings 3,647,621 2,873,263 3,064,702

Accumulated other comprehensive income (loss)9 (114) (49)

Treasury stock, at cost (2,594,337)(2,168,266)(2,168,266)

Total stockholders' equity 2,530,817 2,121,639 2,339,534

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $7,999,279$7,565,490$7,752,859



DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(In thousands)



39 Weeks Ended

October 30, October 31, 2021 2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income $1,173,778$310,637

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

Depreciation, amortization, and other 237,666 239,666

Amortization of convertible notes discount and 22,693 14,345 issuance costs

Non-cash lease costs (80,734) (1,199)

Deferred income taxes 8,613 (22,492)

Stock-based compensation 39,380 35,631

Changes in assets and liabilities:

Accounts receivable (20,655) (12,099)

Inventories (536,870) (121,435)

Prepaid expenses and other assets (7,995) (384)

Accounts payable 194,084 381,383

Accrued expenses (13,918) 30,035

Income taxes payable / receivable (6,854) 14,659

Construction allowances provided by landlords 27,677 42,314

Deferred revenue and other liabilities (30,219) 6,454

Net cash provided by operating activities 1,006,646 917,515

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures (231,087) (156,444)

Proceeds from sale of other assets 9,671 -

Deposits and other investing activities (19,130) (96)

Net cash used in investing activities (240,546) (156,540)

CASH FLOWS FROM FINANCING ACTIVITIES:

Revolving credit borrowings - 1,291,700

Revolving credit repayments - (1,515,800)

Proceeds from issuance of convertible notes - 575,000

Payments for purchase of bond hedges - (161,057)

Proceeds from issuance of warrants - 105,225

Transaction costs paid in connection with - (17,396) convertible notes issuance

Payments on other long-term debt and (553) (612) finance lease obligations

Proceeds from exercise of stock options 24,930 25,472

Minimum tax withholding requirements (29,893) (3,911)

Cash paid for treasury stock (426,111) -

Cash dividends paid to stockholders (567,245) (80,874)

(Decrease) increase in bank overdraft (52,461) 11,932

Net cash (used in) provided by financing (1,051,333)229,679 activities

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH 58 6 EQUIVALENTS

NET (DECREASE) INCREASE IN CASH AND CASH (285,175) 990,660 EQUIVALENTS

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 1,658,067 69,334

CASH AND CASH EQUIVALENTS, END OF PERIOD $1,372,892$1,059,994

Store Count and Square Footage

The stores that opened during the third quarter of 2021 are as follows:

Store Market Concept

Chicago Ridge, IL Chicago DICK'S Sporting Goods

Grand Junction, CO Grand Junction DICK'S Sporting Goods

Norridge, IL Chicago DICK'S Sporting Goods

Framingham, MA Boston Golf Galaxy

Cranberry, PA Pittsburgh Public Lands

Polaris, OH Columbus Public Lands

Orland Park, IL Chicago Outlet Store

Olathe, KS Kansas City Outlet Store

Royal Palm Beach, FL West Palm Beach Outlet Store

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



Store Count:



Fiscal 2021 Fiscal 2020

DICK'S Specialty DICK'S Specialty Sporting Concept Total Sporting Concept Total Goods ^(1)Stores ^(2) Goods Stores ^(2)

Beginning stores 728 126 854 726 124 850

Q1 New stores 2 - 2 1 2 3

Q2 New stores 1 1 2 - 3 3

Q3 New stores 3 6 9 6 5 11

Closed stores - 1 1 1 5 6

Ending stores 734 132 866 732 129 861



Relocated stores 9 - 9 12 3 15

Square Footage:

(in millions)



DICK'S SportingSpecialty Concept Total ^(3) Goods ^(1) Stores ^(2)

Q1 202038.4 3.4 41.8

Q2 202038.4 3.5 41.9

Q3 202038.7 3.6 42.3

Q4 202038.5 3.5 42.0

Q1 202138.7 3.4 42.1

Q2 202138.8 3.5 42.3

Q3 202138.9 3.7 42.7

^ Includes two new DICK'S House of Sport stores which were relocations of(1) former DICK'S Sporting Goods stores.

Includes the Company's Golf Galaxy, Field & Stream and Public Lands stores, as well as the Company's outlet stores, excluding temporary locations. In^ some markets the Company operates DICK'S Sporting Goods stores adjacent to(2) its specialty concept stores on the same property with a pass-through for customers. The Company refers to this format as a "combo store" and includes combo store openings within both the DICK'S Sporting Goods and specialty concept store reconciliations, as applicable. As of October 30, 2021, the Company operated 29 combo stores.

^(3) Column may not add due to rounding.

DICK'S SPORTING GOODS, INC.

GAAP to NON-GAAP RECONCILIATIONS - UNAUDITED

(in thousands, except per share amounts)



Non-GAAP Net Income and Earnings Per Share Reconciliations

(in thousands, except per share amounts)



13 Weeks Ended October 30, 2021



Diluted Earnings Income fromInterest Income before Net shares per operations expense income taxes outstandingdiluted income ^(2) during share period

GAAP Basis $419,868 $13,789 $ 407,827 $ 316,513 113,664 $2.78

% of Net Sales 15.28 %0.50 %14.84 % 11.52 %

Convertible senior notes ^(1)- (7,731) 7,731 5,720 (12,794)

Non-GAAP Basis $419,868 $6,058 $ 415,558 $ 322,233 100,870 $3.19

% of Net Sales 15.28 %0.22 %15.12 % 11.73 %

^ Amortization of the non-cash debt discount on the Company's convertible(1) senior notes and diluted shares that are designed to be offset at settlement by shares delivered from the convertible note hedge purchased by the Company.

^ The provision for income taxes for non-GAAP adjustments was calculated at(2) 26%, which approximates the Company's blended tax rate.

39 Weeks Ended October 30, 2021



Diluted Earnings Income from Interest Income beforeNet shares per operations expense income taxes outstandingdiluted income ^(2) during share period

GAAP Basis $1,559,230 $40,971 $1,534,152 $1,173,778 109,648 $10.70

% of Net Sales 17.44 %0.46 %17.16 %13.13 %

Convertible senior notes ^(1)- (22,693) 22,693 16,793 (10,896)

Non-GAAP Basis $1,559,230 $18,278 $1,556,845 $1,190,571 98,752 $12.06

% of Net Sales 17.44 %0.20 %17.41 %13.32 %

^ Amortization of the non-cash debt discount on the Company's convertible(1) senior notes and diluted shares that are designed to be offset at settlement by shares delivered from the convertible note hedge purchased by the Company.

^ The provision for income taxes for non-GAAP adjustments was calculated at(2) 26%, which approximates the Company's blended tax rate.

13 Weeks Ended October 31, 2020



Diluted Earnings Income fromInterest Income before Net shares per operations expense income taxes outstandingdiluted income ^(2) during share period

GAAP Basis $246,093 $12,769 $ 237,070 $ 177,216 96,571 $1.84

% of Net Sales 10.20 %0.53 %9.83 % 7.35 %

Convertible senior notes ^(1)- (6,683) 6,683 4,945 (5,976)

Non-GAAP Basis $246,093 $6,086 $ 243,753 $ 182,161 90,595 $2.01

% of Net Sales 10.20 %0.25 %10.11 % 7.55 %

^ Amortization of the non-cash debt discount on the Company's convertible(1) senior notes and diluted shares that are designed to be offset at settlement by shares delivered from the convertible note hedge purchased by the Company.

^ The provision for income taxes for non-GAAP adjustments was calculated at(2) 26%, which approximated the Company's blended tax rate.

39 Weeks Ended October 31, 2020



Diluted Earnings Income fromInterest Income before Net shares per operations expense income taxes outstandingdiluted income ^(2)during share period

GAAP Basis $451,277 $35,496 $ 420,512 $310,637 90,430 $3.44

% of Net Sales 6.99 %0.55 %6.51 % 4.81 %

Convertible senior notes ^(1)- (14,345) 14,345 10,615 (2,365)

Non-GAAP Basis $451,277 $21,151 $ 434,857 $321,252 88,065 $3.65

% of Net Sales 6.99 %0.33 %6.73 % 4.97 %

Amortization of the non-cash debt discount on the Company's convertible^ senior notes and diluted shares that are designed to be offset at(1) settlement by shares delivered from the convertible note hedge purchased by the Company. This amount includes $1.1 million of amortization recognized in the fiscal quarter ended May 2, 2020.

^ The provision for income taxes for non-GAAP adjustments was calculated at(2) 26%, which approximated the Company's blended tax rate.

13 Weeks Ended November 2, 2019



Selling, general Income Net Earnings and Income from Gain on sale of before per administrative operations subsidiaries income income ^(4) diluted expenses taxes share

GAAP Basis $ 531,704 $ 45,625 $ (33,779) $77,146 $ 57,584 $0.66

% of Net Sales 27.10 % 2.33 % (1.72) % 3.93 %2.93 %

Gain on sale of subsidiaries ^(1)- - 33,779 (33,779) (24,996)

Hunt restructuring charges ^(2) (8,938) 8,938 - 8,938 6,614

Non-cash asset impairment ^(3) (7,630) 7,630 - 7,630 5,646

Non-GAAP Basis $ 515,136 $ 62,193 $ - $59,935 $ 44,848 $0.52

% of Net Sales 26.25 % 3.17 % - % 3.05 %2.29 %

^(1) ^ Gain on sale of Blue Sombrero and Affinity Sports subsidiaries.

^ Charge related to the Company's exit from eight Field & Stream stores,(2) which were subleased to Sportsman's Warehouse.

^ Non-cash impairment charge to reduce the carrying value of a corporate(3) aircraft held for sale to its fair market value.

^ The provision for income taxes for non-GAAP adjustments was calculated at(4) 26%, which approximated the Company's blended tax rate.

39 Weeks Ended November 2, 2019



Selling, general Income Earnings and Income Gain on sale of before Net per administrative from operations subsidiaries income income ^(5)diluted expenses taxes share

GAAP Basis $ 1,539,934 $ 276,701 $ (33,779) $307,911 $227,643 $2.53

% of Net Sales 25.07 % 4.50 % (0.55) % 5.01 %3.71 %

Gain on sale of subsidiaries ^(1) - - 33,779 (33,779) (24,996)

Hunt restructuring charges ^(2) (8,938) 8,938 - 8,938 6,614

Non-cash asset impairment ^(3) (15,253) 15,253 - 15,253 11,287

Litigation contingency settlement ^(4)6,411 (6,411) - (6,411) (4,744)

Non-GAAP Basis $ 1,522,154 $ 294,481 $ - $291,912 $215,804 $2.39

% of Net Sales 24.78 % 4.79 % - % 4.75 %3.51 %

^(1) Gain on sale of Blue Sombrero and Affinity Sports subsidiaries.

^ Charge related to the Company's exit from eight Field & Stream stores,(2) which were subleased to Sportsman's Warehouse.

^ Non-cash impairment charge to reduce the carrying value of a corporate(3) aircraft held for sale to its fair market value.

^(4) Favorable settlement of a previously accrued litigation contingency.

^ The provision for income taxes for non-GAAP adjustments was calculated at(5) 26%, which approximated the Company's blended tax rate.

52 Weeks Ended January 30, 2021



Diluted Earnings Income fromInterest Income Net shares per operations expense before outstandingdiluted income taxes income ^(2)during share period

GAAP Basis $741,477 $48,812 $ 711,735 $530,251 92,639 $5.72

% of Net Sales 7.74 %0.51 %7.43 % 5.53 %

Convertible senior notes ^(1)- (21,581) 21,581 15,970 (3,460)

Non-GAAP Basis $741,477 $27,231 $ 733,316 $546,221 89,179 $6.12

% of Net Sales 7.74 %0.28 %7.65 % 5.70 %

Amortization of the non-cash debt discount on the Company's convertible^ senior notes and diluted shares that are designed to be offset at(1) settlement by shares delivered from the convertible note hedge purchased by the Company. This amount includes $1.1 million of amortization recognized in the fiscal quarter ended May 2, 2020.

^ The provision for income taxes for non-GAAP adjustments was calculated at(2) 26%, which approximated the Company's blended tax rate.

52 Weeks Ended February 1, 2020

Selling, Gain on Income Diluted Earnings general and Income before Net shares per Gross profit administrative from sale of income outstandingdiluted expenses operations subsidiariestaxes income ^(5) during share period

GAAP Basis $2,554,558 $ 2,173,677 $375,613 $(33,779) $407,704 $ 297,462 89,066 $3.34

% of Net Sales 29.19 %24.84 % 4.29 %(0.39) %4.66 %3.40 %

Hunt restructuring charges ^(1) 13,135 (44,588) 57,723 - 57,723 50,072

Gain on sale of subsidiaries ^(2) - - - 33,779 (33,779) (24,996)

Other asset impairments ^(3) - (15,253) 15,253 - 15,253 11,287

Litigation contingency settlement ^(4)- 6,411 (6,411) - (6,411) (4,744)

Non-GAAP Basis $2,567,693 $ 2,120,247 $442,178 $- $440,490 $ 329,081 89,066 $3.69

% of Net Sales 29.34 %24.23 % 5.05 %- %5.03 %3.76 %

Hunt restructuring charges of $57.7 million included $35.7 million of^ non-cash impairments of a trademark and store assets, a $13.1 million(1) write-down of inventory and an $8.9 million charge related to our exit from eight Field & Stream stores in the third quarter, which were subleased to Sportsman's Warehouse.

^(2) Gain on sale of Blue Sombrero and Affinity Sports subsidiaries.

^ Non-cash impairment charges to reduce the carrying value of a corporate(3) aircraft to its fair market value, which was subsequently sold.

^(4) Favorable settlement of a previously accrued litigation contingency.

^ Except for the impairment of the trademark, the provision for income taxes(5) for non-GAAP adjustments was calculated at 26%, which approximated the Company's blended tax rate. The trademark impairment charge of $28.3 million was not deductible for tax purposes.

Reconciliation of Gross Capital Expenditures to Net Capital Expenditures

(in thousands)



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



39 Weeks Ended

October 30, October 31, 2021 2020

Gross capital expenditures $(231,087) $(156,444)

Construction allowances provided by landlords 27,677 42,314

Net capital expenditures $(203,410) $(114,130)

Reconciliation of Non-GAAP Consolidated Net Income and Earnings Per Diluted Share Guidance

(in millions, except per share amounts)



52 Weeks Ended January 29, 2022

Low End High End



Income Net WeightedEarningsIncome Net WeightedEarnings before average per before average per income income ^(2)diluted diluted income income ^(2)diluted diluted taxes shares share taxes shares share

GAAP Basis $1,860 $ 1,423 110.5 $12.88$1,890 $ 1,443 110.5 $13.06

Convertible senior notes ^(1)30 22 (11.5) 30 22 (11.5)

Non-GAAP Basis $1,890 $ 1,445 99.0 $14.60$1,920 $ 1,465 99.0 $14.80

% of Net Sales 15.6 %11.9 % 15.8 %12.0 %



^ Amortization of the non-cash debt discount on the Company's convertible(1) senior notes and diluted shares that are designed to be offset at settlement by shares delivered from the convertible note hedge purchased by the Company.

^ The provision for income taxes for non-GAAP adjustments was calculated at(2) 26%, which approximates the Company's blended tax rate.

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SOURCE DICK'S Sporting Goods, Inc.