Dick’s Sporting Items (DKS) earnings This autumn 2023

Dick’s Sporting Items raised its dividend by 10% on Thursday as the corporate posted its largest gross sales quarter in its historical past and projected one other yr of progress.

Many retailers benefited from a 53rd week in fiscal 2023, however Dick’s mentioned it nonetheless broke data throughout its fiscal fourth quarter even with out these additional days.

This is how the athletic attire retailer did in contrast with what Wall Avenue was anticipating, based mostly on a survey of analysts by LSEG, previously often called Refinitiv:

• Earnings per share: $3.85 adjusted vs. $3.35 anticipated
• Income: $3.88 billion vs. $3.80 billion anticipated

The corporate’s reported internet earnings for the three-month interval that ended Feb. 3 was $296 million, or $3.57 per share, in contrast with $236 million, or $2.60 a share, a yr earlier. Excluding one-time objects associated to impairment costs and stock write offs, Dick’s reported earnings per share of $3.85. 

Gross sales rose to $3.88 billion, up about 8% from $3.60 billion a yr earlier.

 “With our industry-leading assortment and robust execution, we capped off the yr with an extremely sturdy fourth quarter and vacation season,” CEO Lauren Hobart mentioned in an announcement. 

“We’re guiding to a different sturdy yr in 2024. We plan to develop each our gross sales and earnings by way of optimistic comps, increased merchandise margin and productiveness positive aspects,” she added.

Through the quarter, identical retailer gross sales rose 2.8%, nicely forward of the 0.8% elevate that analysts had anticipated, based on StreetAccount. “Progress in transactions” and market share positive aspects drove the rise, mentioned govt chairman Ed Stack. 

For fiscal 2024, Dick’s is anticipating earnings per share to be between $12.85 and $13.25, in comparison with estimates of $12.90, based on LSEG. It is forecasting income between $13 billion and $13.13 billion, roughly according to estimates of $13.13 billion, based on LSEG. 

The corporate expects identical retailer gross sales to rise by 1% to 2%. 

Following the sturdy quarter, Dick’s raised its quarterly dividend 10% to $1.10 per share. 

Headed into the vacation season, Dick’s raised its gross sales and earnings outlook for the total yr however struck a cautious tone concerning the essential vacation buying interval, saying repeatedly it was optimistic for the issues “inside our management.” 

“We’re being conservative on the low finish of our steerage,” Hobart mentioned on a name with analysts after Dick’s third quarter outcomes had been introduced. “We compete with everybody on the planet through the fourth quarter, and likewise the buyer goes by way of an terrible lot, and we’re simply making an attempt to be cautious.”

Learn the total earnings launch right here.