Dick's Sporting Goods 2012 Annual Report Download - page 4

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At DICK’S we have the drive to be untouchable.
Although we have already built the largest and most
profitable publicly held specialty sporting goods retailer
in the nation, for us leadership simply isn’t enough.
Instead, we are committed to capturing a significant
advantage over our competitors in every possible way.
In 2012, we strengthened our competitive position by
expanding our store network, enhancing our shopping
environment, growing our private brand portfolio and
upgrading several of our key technology systems. We
also took aggressive steps to build our omni-channel
platform, including adding new functionality to our
website and launching a highly successful ship-from-
store capability that has given us a valuable competitive
advantage. Finally we set the stage for future growth
by opening our fourth distribution center, breaking new
ground with our aptly named “Untouchable” marketing
campaign and fueling our market research engine by
testing new retail concepts.
Together, these initiatives drove sales, enabling DICK’S
to deliver excellent 2012 financial performance. Our
2012 consolidated non-GAAP earnings per diluted share
rose 25 percent to $2.53 on a 53-week basis, or rose
24 percent to $2.50 on a 52-week basis, respectively,
compared with consolidated non-GAAP earnings
per diluted share of $2.02 in 2011. Operating margin
grew 72 basis points for the 53 weeks in 2012. Our
overall same-store sales grew 4.3percent, reflecting
increases across both our DICK’S Sporting Goods
and Golf Galaxy chains, as well as in our eCommerce
channel. We also continued to maintain a solid balance
sheet, ending 2012 with $345million in cash and cash
equivalents and no outstanding borrowings under our
revolving credit facility. We utilized a portion of our
strong capital base to return value to our shareholders
by paying a quarterly dividend of $0.125 per share
throughout the year, followed by a special dividend of
$2.00 per share in December 2012.
DEAR FELLOW SHAREHOLDERS
In today’s intensely competitive athletic world, the top contenders are
often separated by the narrowest of margins, with a tenth of a point or
a thousandth of a second marking the difference between victory and
defeat. Only occasionally does a truly elite athlete emerge — one that
even competitors consider “untouchable.”
EVERY START
EVERY METER
EVERY FINISH
EVERY SEASON STARTS AT DICK’S
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