Dick's Sporting Goods 2014 Annual Report Download - page 51

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25
• Quality of merchandise offerings – To measure acceptance of its merchandise offerings, the Company monitors sell-
throughs, inventory turns, gross margins and markdown rates on a department and style level. This analysis helps the
Company manage inventory levels to reduce cash flow requirements and deliver optimal gross margins by improving
merchandise flow and establishing appropriate price points to minimize markdowns.
• Store productivity – To assess store-level performance, the Company monitors various indicators, including new store
productivity, sales per square foot, store operating contribution margin and store cash flow.
Executive Summary
• Net income for the 52 weeks ended January 31, 2015 increased 2% to $344.2 million, or $2.84 per diluted share, as
compared to net income of $337.6 million, or $2.69 per diluted share, during the 52 weeks ended February 1, 2014.
• Fiscal 2014 net income includes $8.7 million, net of tax, or $0.07 per diluted share, related to a gain on the sale of
a Gulfstream G650 corporate aircraft and charges totaling $12.2 million, net of tax, or $0.10 per diluted share,
related to the Company's golf restructuring.
• Fiscal 2013 net income included $4.3 million, net of tax, or $0.03 per diluted share, related to the partial recovery
from the Company's previously impaired investment in JJB Sports and $4.7 million, net of tax, or $0.04 per
diluted share, related to a non-cash impairment charge to reduce the carrying value of a Gulfstream G450
corporate aircraft held for sale to fair market value.
• Net sales increased 10% to $6,814.5 million in fiscal 2014 from $6,213.2 million in fiscal 2013 due primarily to a
2.4% increase in consolidated same store sales and the growth of our store network.
• eCommerce sales penetration in fiscal 2014 increased to 9.2% of total sales compared to 7.9% in fiscal 2013.
• Gross profit decreased to 30.62% in fiscal 2014 as a percentage of net sales from 31.29% in fiscal 2013 due primarily
to lower merchandise margins and higher shipping expenses, partially offset by occupancy leverage.
• In fiscal 2014, the Company:
• Opened 46 new Dick's Sporting Goods stores, one new Golf Galaxy store and eight new Field & Stream stores.
The Company also relocated five Dick's Sporting Goods stores and two Golf Galaxy stores, remodeled five Dick's
Sporting Goods stores and closed one Dick's Sporting Goods store and two Golf Galaxy stores.
• Declared and paid aggregate cash dividends of $0.50 per share of common stock and Class B common stock.
• Repurchased approximately 4.3 million shares of common stock for $200.0 million.
• Purchased the intellectual property rights to the Field & Stream mark in product categories that were not
otherwise owned by the Company, including men's, women's and children's casual apparel, for $26.3 million.
• Ended the period with no outstanding borrowings under our revolving senior secured credit facility (the "Credit
Agreement").