Dick’s Sporting Items (DKS) This autumn 2020 earnings

A Dick’s Sporting Items retailer

Craig Warga | Bloomberg | Getty Photos

Dick’s Sporting Items on Tuesday topped Wall Avenue’s fourth-quarter estimates, as buyers continued to purchase gear and attire for outside actions and residential exercises through the pandemic.

Shares had been down by greater than 6% early Tuesday, nevertheless, as the corporate forecast that gross sales developments will doubtless gradual.

The sporting items retailer estimated that same-store gross sales might decline as a lot as 2% or develop by as a lot as 2% within the yr forward, a major drop from same-store gross sales development of almost 10% in fiscal 2020. It estimated internet gross sales for the yr forward will vary between $9.54 billion and $9.94 billion, roughly flat in contrast with its internet gross sales of $9.58 billion in fiscal 2020.

Here is how the corporate did through the fiscal fourth quarter ended Jan. 30, in contrast with what analysts had been anticipating, based mostly on Refinitiv knowledge:

  • Earnings per share: $2.43 adjusted vs. $2.28 anticipated
  • Income: $3.13 billion vs. $3.07 billion anticipated

Dick’s reported a fourth-quarter internet revenue of $219.6 million, or $2.21 per share, up from $69.8 million, or 81 cents per share, a yr earlier. Excluding one-time fees, the corporate earned $2.43 per share, increased higher than the $2.28 anticipated by analysts.

Internet gross sales climbed to $3.13 billion from $2.61 billion a yr earlier, increased than the $3.07 billion forecast by analysts.

Similar-store gross sales rose by 19.3% within the fourth quarter, higher than the expansion of 17.1% anticipated by a StreetAccount survey. E-commerce gross sales grew by 57% through the interval.

Dick’s gross sales have picked up through the pandemic, as buyers purchased golf golf equipment, exercise tops and different objects to remain in form and move the time through the pandemic. Activewear has been a well-liked, however more and more aggressive class, as retailers together with Goal, Kohl’s, Hole-owned Athleta and Lululemon all vie for extra market share.

Dick’s will enhance investments within the yr forward to between $275 million and $300 million, increased than its whole capital expenditures of $167 million and $180 million in fiscal 2020 and financial 2019, respectively.

CEO Lauren Hobart, who stepped into her function in February, stated the retailer needs to capitalize on developments, reminiscent of shopper demand throughout outside actions. She stated it has had a robust begin to the fiscal yr.

“It is clear that our methods over the previous a number of years are working and have set us up for long-term success,” she stated in a press launch.

Within the coming yr, Dick’s stated it plans to open six new shops and 6 specialty idea shops. Together with its off-mall sporting items shops, the retailer operates Golf Galaxy and Discipline & Stream shops.

The corporate stated it plans to purchase again not less than $200 million of its inventory this yr.

As of market shut on Monday, Dick’s shares are up about 119% over the previous yr. The corporate’s market worth is $6.87 billion.

Learn the complete press launch right here.