DICK'S Sporting Q4 Results Top Estimates; Doubles Dividend

Sporting goods retailer DICK’S Sporting Goods, Inc. (DKS) reported Tuesday that profit for the fourth quarter decreased 32 percent from last year, hurt by lower gross margins despite a 7.3 percent net sales growth. Adjusted earnings per share and quarterly net sales topped analysts’ estimates.

The company also initiated earnings and consolidated same store sales guidance for the full-year 2023.

In pre-market trading on the NYSE, DICK’S Sporting shares are up $5.96 or 4.51 percent to $138.10.

“These results and our 2023 outlook demonstrate the strength of our business as we continue to execute our multi-year transformation through focused strategies and strong execution,” said Ed Stack, Executive Chairman.

For the fourth quarter, net income declined to $235.62 million or $2.60 per share from $346.09 million or $3.16 per share in the prior-year quarter. Excluding items, adjusted income was $2.93 per share, compared to $3.64 per share in the year-ago quarter.

On average, 24 analysts polled by Thomson Reuters expected the company to report earnings of $2.88 per share for the quarter. Analysts’ estimates typically exclude special items.

Net sales for the quarter increased 7.3 percent to $3.60 billion from $3.35 billion in the same quarter last year. Comparable store sales grew 5.3 percent. Analysts expected net sales of $3.45 billion for the quarter.

Gross margin for the quarter declined 516 basis points to 32.42 percent from last year.

For fiscal 2023, the company now projects earnings in a range of $12.90 to 13.80 per share and consolidated same store sales between flat to up 2.0 percent.

The Street is looking for earnings of $12.03 per share on net sales of $12.47 billion for the year.

On Monday, the Company’s Board of Directors authorized and declared a 105 percent higher quarterly dividend of $1.00 per share on the Company’s Common Stock and Class B Common Stock, payable in cash on March 31, 2023 to stockholders of record at the close of business on March 17, 2023.

“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,” said Lauren Hobart, President and Chief Executive Officer.

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