How Dick's Sporting Goods Overcame a Tough Q4

Dick’s Sporting Goods Inc. (NYSE: DKS) reported its most recent quarterly results before the markets opened on Tuesday. The retailer said that it had $1.32 in earnings per share (EPS) and $2.61 billion in revenue, compared with consensus estimates that called for $1.22 in EPS and revenue of $2.57 billion. The fiscal fourth quarter of last year reportedly had EPS of $1.07 on $2.49 billion in revenue.

Net sales for the fourth quarter increased 4.7% year over year. Consolidated same-store sales increased 5.3%, compared with a decrease of 2.2% from last year.

Fourth-quarter e-commerce sales increased 15%. E-commerce penetration for the fourth quarter of 2019 was approximately 25% of total net sales, compared to approximately 23% during the same period last year.

Looking ahead to the 2020 fiscal full year, Dick’s expects to see EPS in the range of $3.60 to $4.00, with same-store sales flat to increasing 2%. Consensus estimates call for $3.85 in EPS and $8.89 billion in revenue for the year.

Edward W. Stack, board chair and CEO, commented:

We are very pleased with our strong fourth quarter results. 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. During 2019, we made meaningful changes across our business, which fueled our strongest annual comp sales gain since 2012 and a 14% increase in non-GAAP earnings per diluted share over 2018. I’d like to thank all our teammates for their hard work and commitment to DICK’S Sporting Goods, which made this performance possible.

Dick’s Sporting Goods stock closed Monday at $34.48 a share, in a 52-week range of $31.27 to $49.80. The consensus price target is $50.17. Following the announcement, the share price was last seen up about 10% at $38.00 in early trading indications Tuesday.

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