Dick's Sporting Goods Financial Analysis

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Financial Analysis of Dick’s Sporting Goods Fall 2011 FIN534 Amini Cancel Professor Muleka Kikwebati December 6, 2011 Financial Analysis of Dick’s Sporting Goods Company Overview Dick’s Sporting Goods, Inc. was founded in 1948 by Richard "Dick" Stack at the age of 18 and since then, the chain has expanded to become one of the largest sporting goods retailers in the world. Dick's Sporting Goods, Inc. is a Fortune 500 American corporation in the sporting goods and retail industries. The company’s headquarters are located in Pittsburgh International Airport in Findlay Township near Pittsburgh, Pennsylvania and as of July 25, 2011, it has accumulated 451 stores in 42 states, all of which are primarily in the eastern half of the…show more content…
The company is committed to upholding solid principles of corporate governance and they always aim to provide a safe and positive place to work. This company combines a true passion for its business, along with exceptional agility in managing market shifts and a solid focus on delivering long-term results. Together, these attributes have fueled the company’s progress for over six decades, which translates into exceptional will power. In addition, the company’s strategies for profitable growth include expanding the stores networking and driving margin growth through inventory management, private brand sales, regionalization, unique vendor relationships, store enhancements and operating…show more content…
Dick’s Sporting Goods is rapidly growing and achieving things that many people thought would be impossible. This year alone, Dick's Sporting Goods has exceeded expectations with its third-quarter results and they have also pleased their shareholders with its plans to start paying dividends. Dick’s Sporting Goods now operates more than 450 shops across 42 states, along with 81 Golf Galaxy stores in 30 states and they do not plan to stop here. Dick's third-quarter net sales rose by 9.3% from the year-earlier, to almost $1.2 billion, with the help of additional sales from 19 newly opened stores. The company's gross margins went up by 126 basis points, to 29.7%, mainly because of better inventory management and a change in the product mix and selling and administration expenses range in at $274.4 million. Earnings before interest and taxes were up by 89%, to $71.6 million, and EBIT margins were up by a significant 340 basis points, to 6.1%. The company's net income also followed suit and soared by an amazing 146%, to $41.5 million, although it was slightly offset by higher

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