Dick's Sporting Goods posts Q1 loss, sales drop by 30.6 percent
Prachi Singh| Tuesday, June 02 2020
Dick’s Sporting Goods, Inc. reported a consolidated net loss for the first quarter ended May 2, 2020 of 143.4 million dollars or 1.71 dollars per diluted share compared to consolidated net income of 57.5 million dollars or 61 cents per diluted share in the same quarter of 2019. On a non-GAAP basis, the company reported consolidated net income of 58.4 million dollars or 62 cents per diluted share. Net sales for the quarter decreased 30.6% to approximately 1.33 billion dollars, while consolidated same store sales decreased 29.5 percent, driven by temporary store closures that started on March 18, 2020 to help prevent the spread of Covid-19.
“Although the business environment of 2020 remains uncertain, Dick’s Sporting Goods is in a position of strength. Perhaps most importantly, our balance sheet is strong, and due to the actions taken when the pandemic first hit, we have enhanced liquidity to emerge from this crisis in an even stronger competitive position. Now, with confidence in our liquidity position and our stores re-opening, we can turn our attention to gaining market share for the remainder of 2020 and positioning our business for profitable growth in 2021” said Edward W. Stack, Chairman and Chief Executive Officer.
Ecommerce sales for the quarter increased 110 percent, including Curbside Contactless Pickup, while ecommerce penetration was approximately 39 percent of total net sales, compared to approximately 13 percent during the first quarter of 2019. Following the company’s temporary store closures through the end of the first quarter of 2020, ecommerce sales increased 210 percent.
Coronavirus hits Dick's Sporting Goods sales
In response to the Covid-19 pandemic, in March, the company amended its revolving credit facility to add 255 million dollars of borrowing capacity, bringing total capacity to 1.855 billion dollars. In April, the company issued 575 million dollars aggregate principal amount of its 3.25 percent Convertible Senior Notes, which added over 500 million dollars of net proceeds to the cash position. The company ended the quarter with 1.5 billion dollars in cash and cash equivalents and 1.4 billion dollars in outstanding borrowings under its revolving credit facility.
Picture:Facebook/Dick's Sporting Goods