Dick's Sporting Goods Inc.'s plans for the next year include boosting its recently acquired Top-Flite brand with more new lines of golf balls, working to turn around a struggling sports merchandise retailer in the United Kingdom and fine-tuning a concept store for running enthusiasts.
"We are a growth company," CEO Edward W. Stack said after the Findlay-based company's annual shareholders meeting on Wednesday.
Buying Top-Flite from Callaway Golf Co. for $20 million gives Dick's three golf ball brands. The others are Slazenger's Raw Distance and MaxFli.
"They're great brands that were up for sale, and we bought them, and feel we can position each of them slightly differently, to different golfers," Stack said. "We're pretty enthusiastic about it all."
Opening more new Dick's and Golf Galaxy stores nationwide will continue. The goal is turning more attention to the improving golf market, with plans for larger Golf Galaxy stores to replace some of that chain's original locations.
New stores will be along the lines of the 36,000-square foot store in Robinson, which Dick's initially opened as The Golf Shop before acquiring the Golf Galaxy chain in 2007. Golf Galaxy has 81 stores in 30 states.
Newer stores will have hitting bays, fitting areas with ball-flight simulators for customers to test woods and irons, and a broader selections of golf apparel. The new stores will run up to 42,000 square feet in size, but none are planned in the Pittsburgh region at this time, Stack said.
Dick's has 480 stores in 44 states and has been opening about 40 annually toward its goal of 900 locations.
"We'd open a few more if the real estate opened up," Stack said. "There's not a lot of shopping centers being built."
Dick's is building two-story, 80,000-square-foot stores in Cranberry and South Hills Village to replace nearby, smaller locations. Dick's shares closed yesterday at $47.20, up $1.59.
During the meeting and afterward, Stack also touched on:
• The company's $32 million investment in JJB Sports plc, with more than 180 stores in the U.K. The chain is "a bit troubled" after prior managers opted to focus on leisure-related items, rather than sports equipment, Stack said.
"They want to move back to that authentic, athlete house" concept, he said. "They felt we could help them reposition it."
The deal allows Dick's to convert JJB debt to gain a 58 percent ownership stake in the company, but Stack said the stores unlikely would be converted to the Dick's name.
JJB might open the door into Europe, he said, but is focused only on the U.K. for now.
In other business:
• True Runner stores will open in Shadyside and St. Louis. featuring a new concept that likely will provide Dick's stores with lessons catering to avid runners. The market is growing worldwide but it's "not organized today. There are a lot of small independents." The Shadyside store is expected to open later this summer.
• Continued upgrades to its online sales effort, which grew 36 percent last year, along with adding more private brand merchandise.
• Same-store sales are forecast to rise by 3 to 4 percent this year, on top of a 2.2 percent increase last year. Dick's reported a $263.9 million profit last year, or $2.10 a share, up 45 percent from 2010. Revenue grew by 7 percent to $5.2 billion.
Shareholders re-elected Directors William J. Colombo and Larry D. Stone to three-year terms.
