Dick's Sporting Goods 2014 Annual Report Download - page 53

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27
(3) Selling, general and administrative expenses include store and field support payroll and fringe benefits, advertising,
bank card charges, information systems, marketing, legal, accounting, other store expenses and all expenses associated
with operating the Company's corporate headquarters. Selling, general and administrative expenses for the 52 weeks
ended January 31, 2015 includes a $14.4 million gain on sale of a Gulfstream G650 corporate aircraft in addition to
asset impairment and severance charges relating to the Company's golf restructuring of $14.3 million and $3.7 million,
respectively. Selling, general and administrative expenses for the 52 weeks ended February 1, 2014 included $7.9
million relating to a non-cash impairment charge to reduce the carrying value of a Gulfstream G450 corporate aircraft
held for sale to fair market value.
(4) Pre-opening expenses consist primarily of rent, marketing, payroll and recruiting costs incurred prior to a new or
relocated store opening which are expensed as incurred.
(5) Impairment of available-for-sale investments reflects the Company's impairment of its investment in JJB Sports.
(6) Interest expense for the 53 weeks ended February 2, 2013 included rent payments under the Company's financing lease
obligation for its corporate headquarters building, which the Company purchased on May 7, 2012.
(7) Includes investment income recognized to reflect changes in deferred compensation plan investment values with a
corresponding charge to selling, general and administrative costs for the same amount. During the 52 weeks ended
February 1, 2014, other income included $4.3 million related to the partial recovery of its previously impaired
investment in JJB Sports.
Fiscal 2014 (52 weeks) Compared to Fiscal 2013 (52 weeks)
Net Income
The Company reported net income for the year ended January 31, 2015 of $344.2 million, or $2.84 per diluted share, as
compared to net income of $337.6 million, or $2.69 per diluted share, in fiscal 2013. 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
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. The 2.4% increase in consolidated same store
sales contributed $146.4 million of the increase in net sales for fiscal 2014. The remaining $454.9 million increase in the
Company's noncomparable sales is primarily attributable to new stores. The 2.4% increase in consolidated same store sales
consisted of a 3.1% increase at Dick's Sporting Goods and a 9.2% decrease at Golf Galaxy. eCommerce sales penetration was
9.2% of total sales during the current period compared to 7.9% of total sales during fiscal 2013, representing an approximate
increase of 28% in eCommerce sales across both Dick's Sporting Goods and Golf Galaxy.
The increase in consolidated same store sales was primarily driven by increases across most of our apparel, hardlines and
footwear categories, with the exception of the golf and hunting businesses. The same store sales increase at Dick's Sporting
Goods was driven by an increase in sales per transaction of approximately 1.9% and an increase in transactions of
approximately 1.2%. Based upon our fiscal 2014 sales mix, every 1% change in consolidated same store sales, which consists
of both brick and mortar and eCommerce sales, would impact earnings before income taxes for fiscal 2014 by approximately
$20.6 million.
Store Count
During fiscal 2014, the Company opened 46 new Dick's Sporting Goods stores, one new Golf Galaxy store and eight new Field
& Stream stores. Additionally, the Company 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. As of
January 31, 2015, the Company operated 603 Dick's Sporting Goods stores in 46 states, 78 Golf Galaxy stores in 29 states, 10