Dick's Outlines Growth Strategy, Targeting $10B in Sale by End of 2017

DICK'S Sporting Goods, Inc. (NYSE: DKS) today detailed its long-term plan and key strategies to deliver sales andoperating profit growth and drive shareholder value over the next five years.During its Analyst Day meeting, the Company presented a sales target of $10billion by the end of fiscal 2017, representing a 5-year compounded annualgrowth rate (CAGR) of approximately 11% from fiscal 2012 sales of $5.8billion. The Company is focused on driving profitable growth and believes itcan expand its operating margin by approximately 150 bps to 10.5% in fiscal2017, from 9.0% in fiscal 2012, through both the expansion of gross margin andleverage of SG&A expenses.The key drivers of the Company's long-term growth are expected to be DICK'SSporting Goods stores, eCommerce growth through the Company's omni-channelplatform and the Field & Stream brand.DICK'S Sporting Goods StoresThe Company anticipates growing its store base to over 800 DICK'S SportingGoods stores by the end of fiscal 2017, an increase of approximately 300stores from the 518 stores at the end of fiscal 2012. DICK'S Sporting Goodshas developed a range of prototypes depending on market characteristics,including its traditional 50,000 sq. ft. single-level stores, 35,000 sq. ft.smaller market stores and 80,000 sq. ft. two-level stores. The Company'smerchandising strategy will continue to emphasize its strong vendorrelationships, exclusive product and high growth categories such as Youth andWomen's. Additionally, the Company will continue to strategically remodel itsexisting stores to keep them fresh and productive, focusing on key initiativessuch as vendor shops and shared service footwear decks.Omni-channelThe Company also discussed its plan to grow eCommerce sales to approximately$1.1 billion by the end of fiscal 2017, from $292 million in fiscal 2012. TheCompany is planning to internally control its eCommerce platform, beginningwith Golf Galaxy and Field & Stream in 2014 and DICK's Sporting Goods by theend of fiscal 2017. Key strategies for driving omni-channel growth includeassortment and content expansion, leveraging diverse marketing channels togenerate traffic, driving multi-channel loyalty, capitalizing on the trends inmobile and tablet usage, driving conversion and optimizing the supply chain.Field & StreamThe Company announced plans to grow its Field & Stream outdoor specialtyconcept to approximately 55 stores and $750 million in sales by the end offiscal 2017, capitalizing on its heritage in this category and a core outdoormarket estimated at over $30 billion.  These stores will bring adifferentiated experience to the market, focusing on respected nationalbrands, shop-in-shops and specialty store level services.Capital Allocation StrategyDICK'S Sporting Goods also reaffirmed its capital allocation strategy toprovide returns to shareholders through investing in the business,repurchasing shares and paying dividends. To drive the growth of the businessthe Company expects to invest approximately $1.8 billion in capitalexpenditures over the next five years, primarily in new stores, store remodelsand eCommerce. In addition to its quarterly dividend, the Company's existingup to $1 billion 5-year share repurchase authorization provides the capacityto both offset dilution and also acquire shares opportunistically."We are excited about the profitable long-term growth opportunities across ourbusiness in our DICK'S Sporting Goods stores, on-line and through our Field &Stream concept," said Edward W. Stack, Chairman and CEO.Mr. Stack continued, "To support our long-term goals, we intend to makemeaningful investments in our business in the near-term. We are timing theseinvestments to stay ahead of our needs and to produce sustainable, long-termadvantages. Even with approximately $1.8 billion of capital expenditures tosupport our $10 billion sales target, we expect to expand our operatingmargins."Mr. Stack concluded, "In addition to focusing on our customers and ourcommunities, we are laser focused on driving shareholder value over the nextfive years by investing in the long-term growth of the business, repurchasingshares and paying quarterly dividends."Webcast Replay InformationAn archived replay of the webcast of the event will be available forapproximately 30 days on the DICK'S Sporting Goods Investor Relations websiteat www.DicksSportingGoods.com/investors.