Dick’s Sporting Goods’ stock jumps, lifted by strong Q4 results, robust outlook


Dick’s Sporting Goods Inc.’s stock jumped 8.2% Tuesday after the company beat analysts’ earnings estimates in its fourth-quarter results and delivered a better-than-expected full-year earnings outlook.

The retailer reported fourth-quarter net income of $236 million, or $2.60 a share, down from $346 million, or $3.16 a share, in the year-ago quarter. On an adjusted basis, Dick’s Sporting Goods
earned $2.93 a share, compared with the FactSet consensus of $2.88 a share. Fourth-quarter sales were $3.597 billion, up from $3.352 billion a year ago and above the FactSet consensus of $3.451 billion.

Prior to the results, analysts had predicted that Dick’s Sporting Goods would sidestep the pullback in discretionary spending that has affected many retailers this earnings season.

Speaking during a conference call to discuss the results, Dick’s Sporting Goods CEO Lauren Hobart noted that the company’s 2022 sales increased 41% compared with 2019, before the COVID-19 pandemic hit. The company’s fourth-quarter adjusted earnings of $2.93 were also “significantly ahead” of any pre-COVID fourth quarter in the company’s history, she said.

Related: Dick’s Sporting Goods will sidestep retail spending weakness, analysts say

Also on the conference call to discuss the results, Dick’s Sporting Goods CFO Navdeep Gupta explained that approximately 80% of the company’s sales growth compared with 2019 was driven by growth in footwear, athletic apparel, team sports and golf.

The company’s same-store sales increased 5.3% during the fourth quarter, topping the FactSet consensus of up 2.1%. For fiscal year 2023, Dick’s Sporting Goods expects earnings of $12.90 to $13.80 a share, above the FactSet consensus of $12. The company expects same-store sales for fiscal year 2023 to be flat to up 2%, compared with the FactSet consensus of up 0.2%.

“In 2023, we will grow both our sales and earnings through positive comps, a return to square footage growth and higher merchandise margin,” the company said in a statement. “Our consistent performance and financial strength position us to increase the rate of investment in our business to fuel long-term growth opportunities, and also return significant capital to shareholders.”

Dick’s Sporting Goods more than doubled its quarterly dividend to $1 a share.

Of 27 analysts surveyed by FactSet, 13 have an overweight or buy rating, 13 have a hold rating and one has an underweight rating for Dick’s Sporting Goods.




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