Dick's Sporting Goods 2015 Annual Report Download - page 3

Dear Fellow Shareholders,
During our 68 years in the sporting goods industry, we have learned that the greatest opportunities for growth often emerge
during the most challenging times. In 2015, we witnessed this parallel once again. Even with a difficult operating landscape, we
maintained a long-term view of our business, continuing to strengthen our competitive stance and expand our omni-channel
platform.
Reflecting on the year, we delivered several key accomplishments, including:
•We expanded our store network, ending the year with 644 DICK'S stores, 73 Golf Galaxy stores and 19 Field & Stream
stores, including four locations that combine our DICK’S and Field & Stream concepts under one roof.
•We maintained excellent new store productivity, significantly outpacing our goal of 90%.
•We grew our eCommerce business 19% to more than $748 million.
•We made significant progress in transitioning our eCommerce business onto our internal web platform, including using this
platform to re-launch golfgalaxy.com and to launch our first Field & Stream eCommerce site.
Importantly, we maintained a strong balance sheet, ending the year with more than $100 million in cash and no outstanding
borrowings on our $1 billion credit facility. We also continued to return capital to our shareholders, with more than $420 million
paid during the year through dividends and share repurchases.
The credit for our progress during challenging times belongs to our associates, who continue to set DICK’S apart within our
industry. I’d like to thank all of our team members for their hard work and ongoing support.
Leveraging Industry Dynamics
The sporting goods industry is at an inflection point. The competitive landscape is rapidly evolving, and as it does, it is creating
pressure for some and opportunity for others. As the largest and most profitable full-line sporting goods retailer in the nation,
DICK’S is both optimally positioned and fully committed to leveraging this environment to win market share and build long-term
value. We are setting the stage for this by making transformative investments in our business that are aligned with our three
primary growth initiatives:
•To strengthen our leadership position in eCommerce
•To drive store productivity, and
•To increase our share in new and underpenetrated markets.
The foundation for these growth initiatives is our omni-channel platform. We are continuing to expand it by opening new stores in
select markets and by building and developing our eCommerce business, while leveraging the synergies between both
channels.
Strengthening Our eCommerce Business
We remain on track to transition to full operational control of our eCommerce business in January 2017. This is an important
strategic initiative for DICK’S that will significantly improve our profitability, as well as provide the flexibility to create a
differentiated online experience that meets customer expectations for speed, convenience, personalization and mobility. When
the transition is complete, we will have easier access to data, enabling us to leverage cross-channel information to create more
engaging customer experiences. We will also gain control over development cycles, allowing us to conduct faster testing and
implementation. Finally, we will be able to capitalize on emerging market opportunities by quickly developing and launching new
sites that align with customer demand. Together, these advantages will support our mission to make DICK’S the online
community that inspires, educates, entertains and equips athletes and outdoor enthusiasts through every step of their journey.