Dicks Sporting Goods 4Q16 Earnings Call Notes

Ed Stack – Chairman & CEO

Great time to be patient for real estate

“We look at this going forward that now is absolutely the right time to be patient from a real estate standpoint, with all the real estate that’s going to come up on the market. Penney’s announcing stores that they’re closing, Macy’s announcing stores. Some other people that are rumored to be closing stores or — consolidation in this industry is not over. And this is a time that we’re going to be very patient going forward.”

The e-commerce business is probably more profitable than you think

“Still the — so what we expect is as we continue to grow the business that the shipping costs are going to become a bigger piece of the expense structure as the business becomes a bigger piece of the entire business. We’re looking at ways at how we might be able to slow those shipping costs and we’re working through those. But to kind of call out the profitability of e-commerce versus the profitability of the store, we’re not ready to do that. But I will tell you that the e-commerce business is probably more profitable than you think.”