DKS - Dick's Sporting Goods rallies after comparable sales beat

2023-03-07 07:23:05 ET

Dick's Sporting Goods ( NYSE: DKS ) shot higher in early trading on Tuesday after sliding past consensus estimates with its Q4 earnings report .

Comparable sales rose 5.3% during the quarter to smash the consensus expectation for a 2.5% gain. The comp sales tally came against a 6.6% increase in comparable sales from a year ago. The retailer said it gained market share during the quarter.

Non-GAAP Net income was $258M vs. $352M a year ago.

Dick's Sporting Goods ( DKS ) ended the quarter with an inventory position of $2.83B vs. $2.30B a year ago.

During Q4, the retailer decided to exit the Field & Stream brand. As a result, Dick's closed 12 of the remaining 17 stores for conversion into eight Dick's House of Sport stores and four expanded Dick's Sporting Goods stores during the quarter and incurred pre-tax charges totaling $30.1M.

Looking ahead, DKS guided for comparable sales growth of 0% to +2% vs. +0.5% consensus and EPS of $12.90 to $13.80 vs. $12.03 consensus.

CEO outlook: "In 2023, we will grow both our sales and earnings through positive comps, a return to square footage growth and higher merchandise margin. 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. The step-change increase in our dividend clearly reflects our strong conviction in our structurally higher sales and earnings."

Shares of Dick's ( DKS ) rallied 4.51% premarket to $138.10.

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