Dick’s Sporting Goods is located on Staten Island on March 09, 2022 in New York City.
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Dick’s Sporting Goods on Tuesday reported holiday quarter results that beat Wall Street’s expectations, citing a surge in sales since the gift-giving season along with inflation-weary consumers.
Same-store sales rose 5.3% more than doubled in the fourth quarter Analysts estimate 2.1%, according to StreetAccount. This metric measures sales online and at stores that have been open for 14 months or more.
The company’s shares rose nearly 6% in Tuesday’s trading.
The sports good seller’s performance remained steady against an inflationary macro environment and industry inventories. On Tuesday, it said its buyers continued to buy despite deteriorating consumer demand in the sector.
Footwear, sportswear and team sports products were key drivers of performance in the fourth quarter and full year, a company spokesman said. Dick’s Sporting Goods said its size and reach are appealing to suppliers, even as they cut back on distribution partners. This means that popular products like Dick’s can raise their prices Nike Jordan shoes, Hoka running shoes and Brooks sneakers.
Dick’s heads into his next fiscal year with confidence. It expects full-year earnings per share for fiscal 2022 in the range of $10.78 to $12.90 to $13.80. Analysts polled by Refinitiv had expected fiscal 2023 EPS of $12.
It expects same-store sales growth to be flat to 2% for the fiscal year.
Here are the company’s results for the quarter ended January 28 Compared to Wall Street expectations, based on a survey of analysts by Refinitiv:
- Earnings per share: $2.93, adjusted, vs. $2.88 cents expected
- Revenue: $3.60 billion vs. $3.45 billion expected
The company posted net income of $236 million, down 32 percent from $346 million a year earlier.
Dick’s hasn’t been completely immune to the industry’s retail woes, such as inventory hits. Disruptions in the supply chain led Dick’s to stockpile produce to meet pandemic-era demand, only to find that produce was out of season when it arrived.
But the company is confident it has solved its supply chain dilemma as it heads into fiscal 2023.
“As planned, we continued to address our inventory overruns, resulting in our inventory being in good shape by 2023,” said CEO Lauren Hobart.
The company will hold a conference call on Tuesday at 10:00 a.m. ET.
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