Dick’s Sporting Goods (DKS) Reports Superior Fourth Quarter 2021 Results

Signage outside a Dick’s Sporting Goods Inc. store in Clarksville, Indiana on Monday, November 9, 2020.

Luke Sharett | Bloomberg | Getty Images

Dick’s Sporting Goods on Tuesday reported profit and sales growth in its holiday quarter that beat analysts’ estimates, as the company posted massive year-over-year gains that were fueled by purchases pandemics of outdoor equipment and fitness accessories.

The sporting goods giant has offered a better-than-expected forecast for earnings and same-store sales in 2022, which it says sets a foundation for future growth coming out of Covid-19.

Chief Executive Lauren Hobart said Dick’s continues to see strong consumer demand. “Our 2022 sales and earnings outlook establishes a new foundation on which we can build going forward,” she said in a press release.

Shares of Dick rose more than 5% in premarket trading on the news.

Yet even with the easing of pandemic restrictions across the country and the return of shoppers to stores, it is still difficult for retailers to forecast future growth. Businesses navigate a backdrop of skyrocketing inflation and soaring oil prices due to Russia’s invasion of Ukraine.

It is unclear what kind of impact the ripple effects of the war will have on consumer demand in the United States. But it’s likely to become a bigger concern if the rapid price growth persists. Companies from Kohl’s to Victoria’s Secret have mentioned the uncertainty in recent days, as they still expect strong profits this year once supply chain hurdles ease.

Here’s how Dick’s fared in the fourth quarter compared to what Wall Street expected, based on a Refinitiv analyst survey:

  • Earnings per share: $3.64 adjusted vs $3.43 expected
  • Income: $3.35 billion vs $3.31 billion expected

Dick’s reported net income for the three months ended Jan. 29 was $346.1 million, or $3.16 per share, compared with revenue of $219.6 million, or $2.21 per share. action, a year earlier.

Excluding one-time items, Dick’s earned $3.64 per share, beating earnings per share estimates of $3.43.

Revenue rose 7.3% to $3.35 billion from $3.13 billion a year earlier. This exceeded estimates by $3.31 billion. On a two-year basis, Dick’s said its sales increased 28.5%.

Same-store sales, a key metric that tracks revenue online and in stores open for at least 12 months, rose 5.9%, better than the 4.3% increase analysts were looking for, according to StreetAccount.

The same-store sales gain consisted of a 14% year-over-year increase at Dick’s retail stores and an 11% decline in online revenue, the company said. A year ago, e-commerce sales jumped 57%, with consumers flocking to Dick’s website during the holiday months to buy kayaks, golf clubs, sportswear and other accessories. for physical activities.

For the full year, Dick’s sees adjusted earnings per share in the range of $11.70 to $13.10, while analysts were looking for $11.31, according to Refinitiv.

It sees same-store sales for the year down 4% flat, while analysts expected a 3.6% drop from the previous year, in which Dick’s reported an increase of 26%. .5%.

Dick’s also announced Tuesday that its board of directors had approved an 11% increase in its quarterly dividend.

As of Monday’s market close, shares of Dick were down 14% year-to-date, bringing its market capitalization to $8.9 billion.

Find the full Dick’s earnings press release here.

This story is developing. Please check for updates.

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