Dick’s Sporting Goods Inc. (Pittsburgh) reported a 67 percent gain in net income for its fourth quarter ended Jan. 29, 2005. The figures include the operating results for the recently purchased Galyan’s Trading Co. (Plainfield, Ind.), which was acquired in July 2004.
Total sales for the quarter increased 66 percent. Same-store sales gains increased only 1.1 percent. Galyan’s stores will not be included in the comparable store base until 13 months after the completion of the re-branding and re-merchandising effort expected to occur by the end of the second quarter of 2005.
During the fourth quarter, the sporting goods retailer opened five stores and closed four stores (one Dick’s store and three Galyan’s stores), bringing the total stores opened for the year to 29 and the total stores closed for the year to six (three Dick’s stores and three Galyan’s stores). The stores that opened in the fourth quarter include: Easton, Pa. (the second store in the Allentown market); two stores in Indianapolis; West Mifflin, Pa. (the ninth store in the Pittsburgh market); and Portsmouth, N.H. The one Dick’s store that closed was in Cleveland, due to its overlap with a Galyan’s store. The three Galyan’s stores closed were all in Indianapolis. As of January 29, the company operated 234 stores in 33 states.
For the full fiscal year, net income gained 48 percent, total sales increased 43 percent and same-store sales increased 2.6 percent.
“We are very pleased as a team to have accomplished so much in the fourth quarter,” said chairman and ceo Edward Stack. “We are reporting another strong quarter of operating results and effective management of our inventory while making considerable progress in the conversion of the Galyan’s stores. Regarding the Galyan’s conversion: we have converted the point-of-sale systems in the stores, re-signed the stores, converted the warehouse management system in the former Galyan’s distribution center, closed the corporate office and converted all activity onto Dick’s systems. We have also made progress on re- merchandising stores to place more of an emphasis on sporting goods.”
The company said it anticipates closing 10 stores in conjunction with the conversion — six Dick’s stores and four former Galyan’s stores.