Dick's Sporting Goods Inc. (NYSE:DKS) Q2 2020 Earnings Conference Call - Final Transcript

Aug 26, 2020 • 10:00 am ET


Dick's Sporting Goods Inc. (NYSE:DKS) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning and welcome to the DICK'S Sporting Goods Second Quarter Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Nate Gilch, Senior Director of Investor Relations. Please go ahead.

Nate Gilch

Good morning, everyone and thank you for joining us to discuss our second quarter 2020 results. On today's call will be Ed Stack, our Chairman and Chief Executive Officer; Lauren Hobart, our President; and Lee Belitsky, our Chief Financial Officer. A playback of today's call will be archived in our Investor Relations website located at investors.DICKS.com for approximately 12 months.

As a reminder, we will be making forward-looking statements, which are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factor discussions in our filings with the SEC, including our last Annual Report on the Form 10-K and cautionary statements made during this call. We assume no obligation to update any of these forward-looking statements or information. Please refer to our Investor Relations website to find the reconciliation of any non-GAAP financial measures referenced in today's call.

And finally, a couple of admin items, first, a note on our same-store sales reporting practices. Our consolidated same-store sales calculation include stores that were temporarily closed as a result of COVID-19. The method of calculating comp sales varies across the retail industry including the treatment of temporary store closures as a result of COVID-19. Accordingly, our method of calculation may not be the same as other retailers. Furthermore, recall during our Q4 call, we announced our intent to move away from providing e-commerce sales growth and e-commerce penetration metrics beginning in Q1.

Given the circumstances surrounding our store closures, we provided these metrics last quarter and are continuing to provide these metrics for Q2. We will revisit this decision for the third quarter. And lastly for your future scheduling purposes, we are tentatively planning to publish our third quarter 2020 earnings release before the market opens on November 24th, 2020 with our subsequent earnings call at 10:00 AM Eastern Time.

And with that, I will now turn the call over to Ed.

Edward W. Stack

Thanks, Nate. Good morning, everyone. As announced earlier this morning. We had an exceptionally strong second quarter in which we delivered our highest ever quarterly sales and earnings. We achieved record consolidated sales of $2.71 billion, consolidated same-store sales increased 20.7%, even with approximately 15% of our stores closed on average during the period. This followed our 3.2% comp increase last year. Our second quarter non-GAAP earnings per diluted share of $3.21 represented a 155% increase over last year and was also an all-time record.

Before we get into the details, I want to take a moment to thank our teammates, whose hard work and dedication to our Company and to the athletes we serve made these significant results possible. Concurrent with our strong business performance, I'm pleased to