Dick’s Sporting Goods reported healthy net income and increased e-commerce penetration in the first quarter despite experiencing significant challenges in the golf and hunting categories.
Net income increased 8% to $69.98 million from $64.82 million. Net sales increased 8% to $1.44 billion from $1.33 billion while sames store sales at Dick's store increase 2.3% but declined 10.4% and Golf Galaxy locations. The company anticipates an increase of 1.3% in same-store sales for both the second quarter and full fiscal year.
Of note on the digital front was the fact that e-commerce penetration increased to 7% of sales from 5.8% last year, according to the company.
“Our difficulties this quarter were isolated to two categories: golf and hunting," said chairman and CEO Edward W. Stack. "After a very challenging first quarter in golf last year, we expected some further headwinds and only modest improvement, but instead we saw a continued significant decline. In the case of hunting, we planned the business down based on last year's catalysts, but it was even weaker than expected."
Dick’s plans to open 50 new Dick’s Sporting Goods stores during the year, relocate five Dick’s stores and remodel five Dick’s stores. The company also intends to open approximately eight new Field & Stream stores, relocate two Golf Galaxy stores and open one new Golf Galaxy store in 2014.