New York -- Dick’s Sporting Goods reported second quarter net income of $69.5 million, below expectations, compared to $84.2 million the prior year. Its results included a $20.4 million charge related to restructuring of the company’s golf business,
The retailer reported $1.7 billion in revenue, up 10.3% from the same period last year and in line with estimates. E-commerce sales increased to 6.3% of sales, from 5.6% of sales the prior year.
Same-store sales increased 3.2%, better than expected, with sales up 4.1% at Dicks and down 9.3% at Golf Galaxy.
“As anticipated, the golf and hunting businesses continued to experience negative comps,” said CEO Edward Stack in a statement noting that without these categories the business would have delivered a 7.8% same store sales increase. “We saw significant strength in several areas, including categories that have received more space within our stores, such as women’s and youth athletic apparel.”
Stack noted the company has consolidated its Golf Galaxy merchandising, marketing and store operations into Dick’s Sporting Goods.
“In addition, we have eliminated specific staff in our golf area within our Dick’s Sporting Goods stores,” he said. “These changes are necessitated by the current and expected trends in golf. We will invest these cost savings into other aspects of our store operations and into the growth areas of our business."
One of those areas is the company’s newest concept known as Field & Stream. One of the new outdoor stores was opened in the second quarter, but seven additional locations are planned for the third quarter.
In the third quarter, Dick’s expects to open approximately 24 namesake stores, seven Field & Stream stores and one Golf Galaxy store.
Dick’s ended the second quarter with 574 Dick’s Sporting Goods stores and 85 Golf Galaxy stores.