Dick's Sporting Goods 2012 Annual Report Download - page 5

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UNTOUCHABLE
A POWERFUL DISTRIBUTION NETWORK
Over the years, we have consistently adapted our
growth strategy to meet the demands of different
market cycles, and as a result, we have steadily
expanded our store base and extended our geographic
reach. In 2012, we continued to build our distribution
network, opening 38 new DICK’S Sporting Goods
stores in both existing and new markets. Our 2012
growth brought us past the 500th store milestone, and
we ended the year with a total of 518 DICK’S Sporting
Goods locations across the U.S. We maintained an
exceptional new store productivity rate, which was
93.5 percent in the fourth quarter of 2012, reflecting
the effectiveness of our real estate and marketing
strategies in enabling us to overcome persistent
economic softness and ongoing political uncertainty.
While our overall growth prospects in the U.S. are
significant, we are diligently exploring ways to increase
them further. In 2012, we identified a number of
additional growth markets that are smaller in size than
those we currently target but have highly attractive
dynamics. We have developed a small-store format that
will enable us to enter these markets, positioning us to
increase the projected total size of our DICK’S Sporting
Goods U.S. store network from at least 900 potential
locations to more than 1,100.
In 2012, we continued to build the foundation to support
this growth by opening our fourth distribution center.
Located in Arizona, this state-of-the-art facility has
increased our overall capacity to support a total of
750 stores, while providing us with a solid framework
both for our continued expansion in the West and the
ongoing build-out of our eCommerce business.
As we continue to grow, we remain sharply focused
on maintaining the high standards of flexibility and
operational efficiency that have been fundamental to
our past success. In 2012, we implemented systemic
solutions such as merchandise assortment planning,
GROWTH
+ Added 38 new DICK’S Sporting Goods stores, posting
an eight percent growth rate
+ Relocated five DICK’S Sporting Goods stores to
preferred locations
+ Enhanced omni-channel platform with a ship-from-
store capability and a mobile app for smartphone users
+ Relocated, expanded and repositioned a Golf Galaxy
store, with elevated experiential shopping
+ Opened two new True Runner specialty concept stores
+ Opened a new 624,000 square foot distribution center
that has increased our store support capability to
accommodate a total of approximately 750 stores
2012 RESULTS
PERFORMANCE
+ Delivered sales of $5.8 billion, an increase
of 12 percent
+ Grew operating margins by 72 basis points
+ Increased non-GAAP earnings per diluted
share 25 percent to $2.53 on a 53-week basis
+ Maintained a strong balance sheet and solid
cash position
+ Rewarded shareholders with quarterly
and special cash dividends
+ Completed a $200 million share
repurchase program
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