Dick's Sporting Goods Beats Fourth-Quarter Earnings Expectations

Dick's Sporting Goods posts a same-store sales increase of 5.3% in the quarter.
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Shares of Dick's Sporting Goods  (DKS) - Get Report were climbing nearly 10% to $37.86 a share in premarket trading Tuesday after the sporting goods retailer beat Wall Street's fourth-quarter earnings expectations.

The Pittsburgh-area company reported earnings of $69.8 million, or 81 cents a share compared with $102.6 million, or $1.07 a share, year ago. Adjusted earnings for the latest quarter came to $1.32 a share, beating analysts' calls for $1.22 a share.

Adjusted earnings included a $48.8 million pretax restructuring charge for the removal of the hunt category from about 440 stores in 2020. Dick's in August announced that it was permanently retreating from its "hunt" category, which includes firearms sales.

Net sales increased 4.7% to about $2.61 billion, ahead of forecasts of $2.56 billion.

Same-store sales rose 5.3%, above estimates for a 3% increase.

"We are very pleased with our strong fourth quarter results," Edward Stack, chairman and CEO, said in a statement. "Despite the compressed holiday selling season and the challenging conditions we faced with unseasonably warm weather, we delivered a 5.3% comp sales increase, supported by increases in both average ticket and transactions, as well as growth across each of our three primary categories of hardlines, apparel and footwear." 

Looking ahead, the company said in a statement that its "outlook balances the enthusiasm it has for its business with the rapidly evolving coronavirus situation" and said its low-end outlook includes some caution related to supply chain disruption potentially having an impact on its results beginning in the second quarter.

Dick's Sporting Goods said it expects full-year earnings of $3.60 to $4 a share and same-store sales ranging from flat to up 2%. Analysts surveyed by FactSet are calling for earnings of $3.84 a share and a same-store sales increase of 3.1%.

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