DICK'S Sporting Targets Sales Of $10 Bln. By FY17

(RTTNews) - DICK'S Sporting Goods Inc. (DKS) Wednesday detailed its long-term plan and strategies to deliver sales and operating profit growth over the next five years.

At its analyst day meeting, the company said it has set a sales target of $10 billion by the end of fiscal 2017 - representing a 5-year compounded annual growth rate of about 11% from fiscal 2012 sales of $5.8 billion.

DICK'S Sporting said it is confident on expanding its operating margin by about 150 bps to 10.5% in fiscal 2017, from 9.0% in fiscal 2012, through both the expansion of gross margin and leverage of sellilng and other expenses.

Key drivers of long-term growth are expected to be DICK'S Sporting Goods stores, eCommerce growth through the Company's omni-channel platform and the Field & Stream brand, DICK'S Sporting.

The company anticipates growing its store base to over 800 DICK'S Sporting Goods stores by the end of fiscal 2017, an increase of about 300 stores from fiscal 2012.

DICK'S Sporting plans to grow online sales to over $1.1 billion by fiscal 2017, from $292 million in fiscal 2012.

The company expects plans to grow its Field & Stream outdoor specialty concept to about 55 stores and $750 million in sales by fiscal 2017.

DICK'S Sporting reaffirmed its capital allocation strategy to provide returns to shareholders through investing in the business, repurchasing shares and paying dividends. The company expects to invest about $1.8 billion in capital expenditures over the next five years.

In addition to its quarterly dividend, the company's existing up to $1 billion 5-year share repurchase authorization provides the capacity to both offset dilution and also acquire shares opportunistically, DICK'S Sporting said.