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Dick's Sporting Goods (NYSE: DKS) | Company Profile, History, Competitors

 

DIck's Sporting Goods (NYSE: DKS) is the largest sporting goods retailer in the United States. As of 2017, Dick's has 845 store locations in the United States. It was founded in 1948 and headquartered in Coraopolis, PA.

Dick's was founded in 1948 by Richard "Dick" Stack. In 2016, following the bankruptcy of The Sports Authority, Dick's acquired all of its intellectual property assets and several store leases. Dick's is the largest big box retailer dedicated to sporting goods. The stores feature a product assortment of apparel, footwear, golf, team sportswear, outdoor, fishing and fitness equipment.

Store Concept

The typical Dick's store is 50,000 square feet. The layout of the store is organized and provides customers with a store-within-store feeling. The average store holds 15,000 SKUs.

Business Segments

Dick's operates in three main segments:
  • Hardlines (49% of 2017 Revenues): Consists of golf, team sports, outdoor and fitness equipment.
  • Apparel (34% of 2017 Revenues): Consists of men, women and children's clothes
  • Footwear (17% of 2017 Revenues): Consists of men, women and children's shoes

Hardlines Segment

Dick's sells golf, team sports, outdoor and fitness equipment:
  • Golf Sells golf equipment and also provides golf services like club repairs, adjustments and fitting.
  • Team Sports Sells baseball, football, and soccer equipment and apparel
  • Outdoor Sells hunting, fishing, camping and hiking equipment
  • Fitness Sells treadmills, bicycles and fitness machines

Apparel Segment

Dick's sells men's, women's and children's apparel. Nike and Under Armour represents key brands.

Footwear Segment

Dick's sells men's, women's and children's footwear for training and running.

Suppliers & Logistics

Dick's purchases merchandise from 1,500 vendors. The largest vendors are Nike and Under Armour, which represents more than 10% of Dick's revenues.

Dick's operates four regional distribution centers in the United States.

History

In 1948, the company was founded by Richard Stack as a fishing supply store in Binghamton, NY. The company expanded its product line into sporting goods, apparel and footwear.

In the 1960s, the company opened a second location in Vestal, NY. In 1984, following Richard's retirement, his son Edward Stack took over as Chairman and CEO. in 1997, the company surpassed 50 store locations.

In the 1990s, Dick's expanded in New York, Connecticut, Massachusetts and Pennsylvania. In 1994, the company relocated its headquarters to Pittsburgh, PA.

In 2000, Dick's received a venture capital investment from Vulcan Northwest Venture Capital. In 2002, the company completed an initial public offering. In 2011, the company surpassed 561 store locations.

In 2016, following the bankruptcy of The Sports Authority, Dick's acquired all of The Sports Authority's intellectual property assets and several store leases.

Competitors

Dick's main brick and mortar competitors are Foot Locker, Academy Sports, Bass Pro Shops/Cabellas.

Management

Edward W. Stack (CEO): Edward Stack serves as CEO since 1984.

Lee J. Belitsky (CFO): Lee Belitsky serves as CFO since 2016. Prior, he served in various roles at Dick's including VP Product Development & Planning.

Financials

 $ USD ($mm) FY1/31
 2013    2014 2015 2016 2017 2018
 Revenues $5,836 
$6,213 
$6,815 
$7,271 
$7,922 
 $8,591
 Gross Profit $1,837 
$1,944 
 $2,089 
 $2,183 
 $2,366 
 $2,501
 Operating Profit $524 
$537 
 $544 
 $535 
 $450 
 $478
 Net Income$291
$338 
$344 
 $330 
 $287 
 $323
 EPS$2.31
$2.69 
$2.84 
$2,83 
$2.56 
$3.01


Dick's Sporting Goods
 
  Ticker     NYSE: DKS
  Industry Retail
  Founded 1948
  Headquarters Corapolis, PA
  Revenues
$8,591mm (2017)
  Employees 45,200 (2017)
  Website dickssporting
goods.com