Dick’s Sporting Goods Q2 profit slides due to weak golf sales
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.
Staples Canada taps Kenshoo and RevTrax to optimize omnichannel campaigns
San Francisco — Kenshoo, a provider of predictive media optimization technology, and RevTrak, a promotions platform that drives and measures in-store sales through digital coupons, announced the results of a partnership uniting offline conversions and paid search performance for omnichannel optimization for Staples Canada.
In an effort to better understand its online-to-offline marketing efforts, Staples Canada utilized RevTrax couponing technology to create and track a digital coupon offering consumers $10 off a Copy & Print order of $30 or more. The coupon could be printed, accessed as an online e-commerce code or displayed as a mobile landing page, depending upon where it was accessed.
Once the coupon was redeemed, Staples Canada supplied the redemption data to RevTrax, enabling the matching of search campaigns and keywords to in-store transactions. Kenshoo integrated the keyword-level conversion data into its platform, enabling campaigns to be optimized in real-time for performance by tailoring ad copy and informing bid policies to drive more coupon redemptions.
“By leveraging industry-leading technology from RevTrax and Kenshoo, we were able to efficiently and effectively unite and optimize our online and offline marketing efforts for maximum ROI,” said Arthur Marcoviciu, digital marketing supervisor for Staples Canada." For example, we learned that business customers drive the highest average order value when converting through non-brand keywords. Since most coupon redemptions occur in-store, we wouldn’t have been able to drive this level of cross-channel insight without this partnership."
In the three-month period of the campaign, Staples Canada saw drastic improvement in critical KPIs, including a 200% increase in incremental ROI, a more than 9% increase in average weekly redemptions, a redemption increase of 148% from first to final week, and more than 1.4 million impressions. Simultaneously, average cost-per-click dropped 11%.
By linking the often missing piece of the puzzle — transactional data from the online campaign — to offline conversions, Staples Canada received a holistic view of its omnichannel campaign performance and the ability to optimize campaigns based on in-store transactions just as it does with e-commerce transactions.
Former Aeropostale CEO returns to role
Mall-based specialty retailer Aeropostale has appointed Julian R. Geiger as CEO, effective immediately — a role he previously held until 2010. Geiger succeeds Thomas P. Johnson, a former Brooks Brother executive who replaced Geiger after he left.
In 2011, Geiger was appointed president and CEO of Crumbs Bake Shop. He resigned from Crumbs at the end of December 2013, and rejoined the Aeropostale board in May, and will remain a member.
In a statement, Aeropostale’s board of directors said that they and Johnson mutually agreed that it was time for him to step down. Johnson has reportedly agreed to remain available to the company during the transition.
“Julian’s previous service in the role of CEO combined with his passion for the Aeropostale brand make him an ideal choice to lead this organization,” Karin Hirtler-Garvey, chairperson of Aeropostale’s board, said. “Julian was the leader of Aeropostale’s strategic direction during a period of significant growth, and we are confident in his enthusiasm for the business, his understanding of today’s teen retail marketplace and his intuition regarding teen fashion. We are pleased to have Julian back to help guide Aeropostale, Inc. and further enhance each of the company’s sales channels.”
"I am incredibly honored to have served as CEO of Aeropostale and worked with such an amazing team of people who are as passionate about the company as I am,” Johnson said. “Having spent more than half of my retail career at Aeropostale, it has been incredibly rewarding to see the company grow from a few domestic stores to a global business. I am confident that the strength of the Aeropostale brand and the transformational initiatives we have executed over the past year, including the recent financing and comprehensive cost reduction plan, have set a strong path for Aeropostale to compete successfully in an evolving teen retail market."
"My decision to return to Aeropostale to be its CEO is one that was easy to make," Geiger added. "The opportunity for sales and profit growth; the ability to reinforce the company’s special culture; and the chance to work closely with, and influence, the management team and the field organization combine to create a compelling and dynamic challenge. It is with enormous excitement that I prepare to lead the Aeropostale team into a future filled with optimism and opportunity."
For the second quarter of fiscal 2014, net sales decreased 13% to $396.2 million, from $454 million a year ago. Comparable sales, including the e-commerce channel, for the second quarter decreased 13% compared to the corresponding 13-week period ended August 3, 2013. The company will report complete second quarter earnings Thursday, August 21, after market close.