DICK’S Sporting Goods, Inc. (NYSE:DKS) Q4 2023 Earnings Call Transcript

Warren Cheng: Thanks, Navdeep. Thanks, Lauren. Bye.

Lauren Hobart: All right, thank you.

Operator: Today’s final question will come from the line of Mike Baker with D.A. Davidson. Please go ahead.

Mike Baker: Okay. Thanks. I wanted to ask a follow-up on the outdoor concepts. You talked about bigger picture restructuring or changing some things there. But more specifics, what is the plan in terms of store count there? Are you closing those stores down? And just longer term, couple of iterations you’ve had on the outdoor business in your history, what’s sort of the long-term thought process there? Thanks.

Navdeep Gupta: Yeah. Mike, we continue to be really excited about the outdoor category. When you look at it at the macro level, this is a $40 billion highly fragmented TAM that is out there. And we know there is an opportunity to similarly differentiate in terms of some service, product experience as well as the overall assortment that we can provide. So, what we have done in 2023, we acquired Moosejaw and the work that we did last year was actually bringing the back office operation of Moosejaw and Public Lands together to be able to drive the long-term profitability in that business. And what we have called out in the business optimization actions are actually rationalizing some of the investments that we have made. We are not — we are closing Moosejaw locations, but we are confident in the go-forward business and we’ll continue to evaluate that space. But overall on a long-term basis, continue to remain really confident about the opportunity in the outdoor segment.

Mike Baker: Okay. Thanks. One quick follow-up. I may have missed it. Just looking for a number. Did you tell us how much it cost — the cost to build the 50K stores? So, I think you gave us the sales volume and the EBITDA margin. I may have missed it. I didn’t hear the cost to build and therefore the cash-on-cash returns.

Navdeep Gupta: Yeah. Actually, Mike, both these metrics are in the slide that will be there on our investor relation webpage, both the net capital investment inventory as well as the preopening and then the cash-on-cash return.

Mike Baker: Got it. Sorry. Doing the call on the phone, so I missed that. Appreciate the color. Thank you.

Navdeep Gupta: We appreciate the flexibility of joining us early here.

Operator: This concludes the question-and-answer session. I will now turn the call over to Lauren Hobart, President and Chief Executive Officer, for closing remarks.

Lauren Hobart: Thanks, everybody, and thanks for your interest in DICK’S Sporting Goods. And I wanted to shout out to our 50,000 teammates who really are the reason that we are driving these incredible results. Thank you all very much. See you next quarter.

Operator: This concludes the DICK’S Sporting Goods fourth quarter 2023 earnings conference call.