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Dick’s Sporting Goods Aims for 150 New Stores by 2017

Dick’s Sporting Goods is getting bigger.

The Pittsburgh-based sports equipment retailer announced Tuesday that it’s opening between 135 and 150 stores in new and under-served markets within the next three years, bringing its tally to between 735 and 750 by the end of fiscal 2017.

To that end, the 67-year-old chain, which currently operates more than 600 stores across the U.S., has updated its fiscal 2017 sales target to $8.7-$9 billion, representing a three-year compounded annual growth rate (CAGR) of 8-10 percent from fiscal 2014 sales of $6.8 billion.

The retailer also expects e-commerce growth of up to $1.2 billion during the same period.

In addition to its core brand, Dick’s is stepping up its Field & Stream concept, which sells hunting and fishing goods. The plan is to open about nine Field & Stream stores this year and another five to eight in both 2016 and 2017 for a total of between 30 and 35.

To fund this growth, Dick’s expects to invest an estimated $850 million in net capital expenditure over the next three years. With its $1 billion five-year share repurchase program, the company targets share repurchases of $100 million to $200 million annually and is committed to paying quarterly dividends.

Chairman and CEO Edward W. Stack said the company is “operating in an attractive space” and is “intensely focused” on driving shareholder value over the next three years.