A Dick’s Sporting Goods store
Craig Warga | Bloomberg | Getty Images
Dick’s sporting goods surpassed Wall Street’s fourth quarter estimates on Tuesday as shoppers continued to purchase equipment and apparel for outdoor activities and home exercise during the pandemic.
However, stocks fell more than 8% in premarket trading as the company forecast that sales were expected to slow.
The sporting goods retailer estimated that sales in the same store could decrease by up to 2% or grow by up to 2% in the coming year, a marked decrease from sales growth in the same store of nearly 10% in fiscal 2020. It estimated net sales of Revenue for the coming year will be between $ 9.54 billion and $ 9.94 billion, flat or slightly declining, compared to net revenue of $ 9.58 billion in fiscal 2020.
Here’s how the company performed in the fourth quarter of the fiscal year that ended January 30th: compared to analyst expectations based on refinitive data:
- Earnings per share: $ 2.43 adjusted versus $ 2.28 expected
- Revenue: $ 3.13 billion versus $ 3.07 billion expected
Dick’s reported net income of $ 219.6 million, or $ 2.21 per share, for the fourth quarter, compared to $ 69.8 million, or 81 cents per share, last year. With no one-time expenses, the company made $ 2.43 per share, up on what analysts had expected to be $ 2.28.
Net sales rose from $ 2.61 billion last year to $ 3.13 billion, above the $ 3.07 billion forecast by analysts.
Revenue in the same store rose 19.3% in the fourth quarter, above the 17.1% growth expected by a StreetAccount survey. E-commerce sales increased 57% during the reporting period.
Dick’s sales increased during the pandemic as shoppers bought golf clubs, training tops, and other items to keep in shape and pass the time during the pandemic. Activewear was a popular but increasingly competitive category as retailers like Target, Kohl’s, Gap-owned Athleta, and Lululemon vie for more market share.
Dick’s will increase investments to $ 275-300 million in the coming year, which is above total investments of $ 167 million and $ 180 million in fiscal 2020 and 2019, respectively.
CEO Lauren Hobart, who stepped into her role in February, said the retailer aims to capitalize on trends like consumer demand for golf and outdoor activities. She said it had a strong start to the fiscal year.
“It is clear that our strategies have worked over the past few years and have set us up for long-term success,” she said in a press release.
Dick’s plans to open six new stores and six Concept specialty stores in the coming year. In addition to the sports stores outside the mall, the retailer operates the Golf Galaxy and Field & Stream stores.
The company plans to buy back at least $ 200 million of its stock this year.
At the close of the market on Monday, Dick’s shares were up around 119% over the past year. The company’s market value is $ 6.87 billion.
Read the full press release here.