A Dick sporting goods store
Craig Warga | Bloomberg | Getty Images
Dick’s sporting goods exceeded Wall Street estimates for the fourth quarter on Tuesday as buyers continued to buy equipment and clothing for outdoor activities and home training during the pandemic.
However, shares fell nearly 7% in premarket trading as the company forecasts that sales trends are likely to slow.
The sporting goods retailer estimated that sales in the same store could fall by up to 2% or increase by up to 2% next year, a significant decrease from the increase in sales in the same store of almost 10% in fiscal year 2020. sales for next year will range from $ 9.54 billion to $ 9.94 billion, roughly lower than its net sales of $ 9.58 billion in fiscal 2020.
Here is how the company did in the fourth fiscal quarter ended January 30, compared to what analysts expected, based on Refinitive data:
- Earnings per share: USD 2.43 adjusted compared to USD 2.28 expected
- Revenue: $ 3.13 billion compared to $ 3.07 billion expected
Dick reported fourth-quarter net income of $ 219.6 million, or $ 2.21 a share, up from $ 69.8 million, or 81 cents a share, a year earlier. With the exception of one-time expenses, the company earned $ 2.43 per share, higher than the $ 2.28 expected by analysts.
Net sales rose $ 3.13 billion from $ 2.61 billion a year earlier, higher than analysts’ $ 3.07 billion forecast.
Sales in the same store rose 19.3% in the fourth quarter, better than the 17.1% increase expected by a StreetAccount survey. E-commerce sales increased by 57% during that period.
Dick’s sales rose during the pandemic as shoppers bought golf clubs, training countertops and other items to stay fit and pass the time during the pandemic. Active clothing has been a popular but increasingly competitive category as retailers, including Target, Kohl’s, Gap-owned Athleta and Lululemon, are fighting for a larger market share.
Dick will increase investment next year to $ 275 million and $ 300 million, higher than total capital expenditures of $ 167 million and $ 180 million in fiscal year 2020 and 2019, respectively.
CEO Lauren Hobart, who took over in February, said the retailer wants to capitalize on trends, such as consumer demand for outdoor activities. She said the fiscal year has started strong.
“It is clear that our strategies in recent years are working and have prepared us for long-term success,” she said in a press release.
The following year, Dick said he plans to open six new stores and six specialty concept stores. Together with its sporting goods stores outside the mall, the retailer operates the Golf Galaxy and Field & Stream stores.
The company said it intends to buy back at least $ 200 million of its shares this year.
At the close of trading on Monday, Dick’s shares have risen about 119% in the last year. The company’s market value is $ 6.87 billion.
Read the full press release here.