Dick's Sporting Goods 2015 Annual Report Download - page 28

Results of Operations
The following table presents, for the periods indicated, selected items in the Consolidated Statements of Income as a percentage
of the Company's net sales, as well as the basis point change in percentage of net sales from the prior year:
Fiscal Year
Basis Point
Increase /
(Decrease) in
Percentage of Net
Sales from Prior
Year
Basis Point
Increase /
(Decrease) in
Percentage of Net
Sales from Prior
Year
2015 (A) 2014 2013 2015 - 2014 (A) 2014 - 2013
Net sales 100.00%100.00%100.00%N/A N/A
Cost of goods sold, including
occupancy and distribution costs 69.98 69.38 68.71 60 67
Gross profit 30.02 30.62 31.29 (60) (67)
Selling, general and administrative
expenses 22.19 22.04 22.31 15 (27)
Pre-opening expenses 0.48 0.45 0.34 3 11
Income from operations 7.36 8.13 8.64 (77) (51)
Interest expense 0.06 0.05 0.05 1 —
Other expense (income) — (0.08)(0.20)8 12
Income before income taxes 7.30 8.16 8.79 (86) (63)
Provision for income taxes 2.76 3.11 3.36 (35) (25)
Net income 4.54%5.05%5.43%(51) (38)
(A) Column does not add due to rounding.
Note - As retailers vary in how they record costs of operating their stores and supply chain between cost of goods sold and
selling, general and administrative expenses ("SG&A"), our gross profit rate and SG&A rate may not be comparable to other
retailers. For additional information regarding costs classified in cost of goods sold, SG&A or any other financial statement line
item presented herein, refer to Note 1 to the Consolidated Financial Statements included in Item€8, "Financial Statements and
Supplementary Data", of this Annual Report on Form€10-K.
Fiscal 2015 (52€weeks) Compared to Fiscal 2014 (52€weeks)
Net Sales
Net sales increased 7% to $7,271.0 million in fiscal 2015 from $6,814.5 million in fiscal 2014 due primarily to the growth of
our store network, partially offset by a 0.2% decrease in consolidated same store sales. Noncomparable sales increased $468.0
million due to new stores, partially offset by an $11.5 million sales decrease caused by the 0.2%€decrease€in consolidated same
store sales. The 0.2% decrease in consolidated same store sales consisted of a 0.1% increase at Dick's Sporting Goods and a
5.6% decrease at Golf Galaxy. eCommerce sales penetration was 10.3% of total net sales during the current period compared to
9.2% of total net sales during fiscal 2014, representing an approximate increase of 19% in eCommerce sales.
The decrease in consolidated same store sales was primarily driven by a decrease within the softlines category, partially offset
by increases within the hardlines and footwear categories. The decrease in softlines, which was most notably driven by sales
declines in cold-weather related categories, was negatively impacted by record-setting warm weather across the majority of our
markets during the back half of fiscal 2015. The same store sales increase at Dick's Sporting Goods was driven by an increase
in sales per transaction of approximately 1.3% and a decrease in transactions of approximately 1.2%. Based upon our fiscal
2015 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 2015 by approximately $22.3 million.
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