Dick’s Sporting Goods outlines growth initiative
Dick’s Sporting Goods has outlined its long-term plan to deliver sales and operating profit growth and drive shareholder value in the next five years, with the company’s namesake stores, new Field & Stream retail format and omnichannel platform driving its growth.
Dick’s anticipates growing its store base to more than 800 namesake stores by the end of fiscal 2017, an increase of approximately 300 stores from the 518 stores it operated at the end of fiscal 2012. The chain will continue to remodel its existing stores to keep them fresh, focusing on key initiatives such as vendor shops and shared service footwear decks.
In addition, Dick’s plans to grow its new Field & Stream outdoor specialty store concept to approximately 55 locations and $750 million in sales by the end of fiscal 2017.
On the omnichannel front, the company plans to grow e-commerce sales to approximately $1.1 billion by the end of fiscal 2017, from $292 million in fiscal 2012. Dick’s also revealed it is planning to internally control its e-commerce platform, beginning with Golf Galaxy and Field & Stream in 2014 and Dick's Sporting Goods by the end of fiscal 2017.
"We are excited about the profitable long-term growth opportunities across our business in our Dick's Sporting Goods stores, on-line and through our Field & Stream concept," said Edward W. Stack, chairman and CEO.
During its Analyst Day meeting, Dick’s presented a sales target of $10 billion by the end of fiscal 2017, representing a 5-year compounded annual growth rate of approximately 11% from fiscal 2012 sales of $5.8 billion.
"To support our long-term goals, we intend to make meaningful investments in our business in the near-term,” Stack said. “We are timing these investments to stay ahead of our needs and to produce sustainable, long-term advantages. Even with approximately $1.8 billion of capital expenditures to support our $10 billion sales target, we expect to expand our operating margins."