The Dick’s Sporting Goods logo appears at a store in Williston, United States, on June 19, 2023.
Jakub Porzycki | Nurphoto | Getty Images
Dick’s Sporting Goods raised its dividend 10% on Thursday after the corporate reported its biggest sales quarter in its history and forecast one other yr of growth.
Many retailers benefited from the 53rd week in fiscal 2023, but Dick’s said it still broke records within the fiscal fourth quarter even without those additional days.
Here’s how the sportswear retailer performed in comparison with Wall Street forecasts, based on a survey of analysts by LSEG, formerly often called Refinitiv:
- Earnings per share: Adjusted $3.85 vs. $3.35 expected
- Revenue: $3.88 billion vs. $3.80 billion expected
The company’s net income for the three months ended Feb. 3 was $296 million, or $3.57 per share, compared with $236 million, or $2.60 per share, a yr earlier. Excluding one-time items related to impairment and inventory write-downs, Dick’s earnings per share were $3.85.
Sales rose to $3.88 billion, up about 8% from $3.60 billion a yr earlier.
“Thanks to our industry-leading assortment and excellent execution, we finished the year with an incredibly strong fourth quarter and holiday season,” CEO Lauren Hobart said in a press release.
“2024 is shaping as much as be one other strong yr. We plan to extend each sales and profits due to positive results, higher margins on goods and increased productivity,” she added.
According to StreetAccount, sales in the same quarter increased 2.8%, well above the 0.8% increase that analysts expected. “Increased transaction volume” and increased market share drove the growth, said Executive Chairman Ed Stack.
Dick’s expects fiscal 2024 earnings per share to be between $12.85 and $13.25, compared to estimates of $12.90, according to LSEG. It forecast revenue of $13 billion to $13.13 billion, roughly in line with estimates of $13.13 billion, according to LSEG.
The company expects same-store sales to increase 1% to 2%.
After a strong quarter, Dick’s raised its quarterly dividend 10% to $1.10 per share.
Heading into the holiday season, Dick’s raised its full-year sales and earnings forecasts but maintained a cautious tone regarding the key holiday shopping period, repeatedly saying it was optimistic about matters “which are inside our control.”
“We are conservative at the lower end of our guidance,” Hobart said on a call with analysts after Dick’s third-quarter earnings announcement. “We’re competing with everyone in the world in the fourth quarter, and consumers are also going through an awful lot, so we’re just trying to be cautious.”
Read the full results announcement Here.
