Dick's Sporting Goods 2005 Annual Report Download - page 6

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SALES NET INCOME1
(IN MILLIONS) (PERCENTAGE)
OPERATING MARGINS2
(IN MILLIONS)
2001 2002 2003 2004 2004 P 2005 2001 2002 2003 2004 2004 P 2005 2001 2002 2003 2004 2004 P 2005
dick’s sporting goods, inc. 2005 annual report
4
In the past two years, we took a number of steps to set the
stage for this growth. In 2004, we expanded our distribution
center in Smithton, Pennsylvania;we implemented new
merchandise and allocation systems;and we moved into a
new headquarters location that centralized our corporate
office functions under one roof. In 2005, we made enhance-
ments to our merchandise systems to expedite the flow of
merchandise from our vendors to our stores and to provide
our buyers and planners with more timely data to use in
the decision-making process. We also laid the groundwork
to open another 40 stores in 2006 in a mix of new and
established markets. And we formulated a plan to expand
our distribution center in Plainfield, Indiana, which, when
complete, will yield a total network capacity of 460 stores
between our two distribution centers.
To support the planned growth of our store network and
maximize our supply chain capacity, we began implementing
a warehouse management system that will enable us to
specialty store. We create compelling specialty store environ-
ments by providing customers with authentic merchandise
assortments, highly knowledgeable employee teams, a
first-rate selection of national and private-label brands, and
a range of value-added services. These characteristics set
Dick’s stores apart within our industry and position us to
deliver customer satisfaction in every new market we enter.
Over the years, we have demonstrated our commitment to
this store concept by regularly expanding our store network.
As a result, Dick’s is one of the largest chains of its kind in
the United States, with 255 stores in 34 states and more than
14 million square feet of retail space. As we look ahead,
we believe that there is ample opportunity for us to continue
to grow, and we are sharply focused on capitalizing on
this potential by working to increase our store count by
approximately 15 percent annually in the coming years. In
the process, we plan to increase our penetration of existing
markets, as well as to extend our reach into new markets.
1Results exclude merger integration and store closing costs, gain on sale of investment, and loss on write-down of non-cash investment
2Results exclude merger integration and store closing costs
2004 P: Proforma results as if Galyan’s had been aquired at the beginning of the period
$2,625
$2,449
$2,109
$1,471
$1,273
$1,075
$94.5
$62.1
$74.5
$50.3
$39.6
$23.2
6.5%
4.8%
6.2%
5.8%
5.4%
4.2%