Dick’s Sporting Goods, the popular athletic apparel retailer, has reported its largest sales quarter in history and has projected another year of growth. Despite not benefiting from the 53rd week in fiscal 2023 like many other retailers, Dick’s exceeded expectations and broke records during its fiscal fourth quarter.
In terms of earnings per share, Dick’s reported $3.85 adjusted, surpassing the expected $3.35. The company’s revenue also exceeded expectations, with $3.88 billion compared to the projected $3.80 billion. These impressive figures reflect a significant increase from the previous year, where net income was $236 million or $2.60 per share. Excluding one-time charges, Dick’s reported earnings per share of $3.85.
CEO Lauren Hobart attributes their success to the company’s industry-leading assortment and strong execution. She stated, “With our industry-leading assortment and strong execution, we capped off the year with an incredibly strong fourth quarter and holiday season.” Hobart also expressed confidence in the future, stating that they are guiding for another strong year in 2024, with plans to grow sales and earnings through positive comps, higher merchandise margin, and productivity gains.
One of the standout achievements for Dick’s Sporting Goods was the significant increase in same-store sales during the quarter. Analysts had expected a 0.8% lift, but Dick’s surpassed this with a 2.8% rise. Executive Chairman Ed Stack attributes this growth to an increase in transactions and market share gains.
Looking ahead to fiscal 2024, Dick’s is expecting earnings per share to be between $12.85 and $13.25, while revenue is forecasted to be between $13 billion and $13.13 billion. The company also expects same-store sales to rise by 1% to 2%. These projections are in line with analysts’ estimates.
To reward its shareholders, Dick’s has increased its quarterly dividend by 10% to $1.10 per share following the strong quarter. This demonstrates the company’s confidence in its future performance.
While the company has raised its sales and earnings outlook for the full year, it remains cautious about the crucial holiday shopping period, acknowledging the challenges faced by consumers. Hobart emphasized that they are being conservative with their guidance, given the intense competition during the fourth quarter and the current economic climate.
Overall, Dick’s Sporting Goods has exceeded expectations and set new records in its holiday quarter. With strong sales, increased dividend, and positive projections for the future, the company continues to solidify its position as a leader in the athletic apparel retail industry.
