"We are very pleased with our strong fourth quarter results. Despite the compressed holiday selling season and the challenging conditions we faced with unseasonably warm weather, we delivered a 5.3% comp sales increase, supported by increases in both average ticket and transactions, as well as growth across each of our three primary categories of hardlines, apparel and footwear. During 2019, we made meaningful changes across our business, which fuelled our strongest annual comp sales gain since 2012", commented Edward W. Stack, Chairman and Chief Executive Officer.

Net sales for the fourth quarter of 2019 increased by 4.7% to approximately 2.61 billion US dollars. Consolidated same store sales increased by 5.3%. Fourth quarter 2018 consolidated same store sales decreased 2.2%, adjusted for the calendar shift due to the 53^rd week in fiscal 2017.

The company reported consolidated net income for the 52 weeks ended on the 1^st of February 2020 of 297.5 million US dollars, or 3.34 US dollars per diluted share. For the 52 weeks ended on the 2^nd of February 2019, the company reported consolidated net income of 319.9 million US dollars, or 3.24 US dollars per diluted share.

Net sales for the 52 weeks ended on the 1^st of February 2020 increased by 3.7% to approximately 8.75 billion US dollars. Consolidated same store sales also increased by 3.7%. Consolidated same store sales decreased by 3.1% for the 52 weeks ended on the 2^nd of February 2019, adjusted for the calendar shift due to the 53^rd week in 2017.

Omni-channel Development

eCommerce sales for the fourth quarter of 2019 increased by 15%. eCommerce penetration for the fourth quarter of 2019 was approximately 25% of total net sales, compared to approximately 23% during the fourth quarter of 2018.

In the fourth quarter, the company closed seven Dick's Sporting Goods stores and one Golf Galaxy store. As of the 1^st of February 2020, the company operated 726 Dick's Sporting Goods stores in 47 states, with approximately 38.5 million square feet, 94 Golf Galaxy stores in 32 states, with approximately 2.0 million square feet and 27 Field & Stream stores in 16 states, with approximately 1.2 million square feet.

Mr. Stack concluded: "As we enter 2020, we remain enthusiastic about our business and have been pleased with our start to the year. We are excited to continue to focus on and enhance our 2019 strategies, which include optimizing our inventory and floor space, delivering differentiated merchandising and driving athlete engagement across all channels. Our outlook balances this enthusiasm with a degree of caution over the coronavirus and how it may impact our business."

Accordingly, the low-end of the company’s outlook includes some caution related to supply chain disruption potentially impacting its results beginning in the second quarter.

Consolidated same-store sales are currently expected to be approximately flat to an increase of 2%, compared to a 3.7% increase in 2019.

The company expects to open nine new Dick’s Sporting Goods stores and six new Golf Galaxy stores in 2020. The company also expects to relocate 14 Dick’s Sporting Goods stores and relocate three Golf Galaxy stores in 2020.