Dick’s Sporting Goods’ fourth-quarter revenue rose 7.3% to $3.35 billion.
Dick’s Sporting Goods ended its fiscal year on an upbeat note, with revenue and earnings that beat estimates, including its largest sales quarter, and a better-than-expected forecast for 2022 earnings and same-store sales.
The nation’s largest sporting goods retailer reported net income of $346.1 million, or $3.16 per share, for the quarter ended Jan. 29, up from $219.6 million, or $2.21 a share, in the year-ago period. Adjusted earnings were $3.64 per share, beating analysts’ estimates for $3.43.
Revenue rose 7.3% to $3.35 billion, topping estimates for $3.31 billion. On a two-year basis, sales increased 28.5%.
Same-store sales rose 5.9%, more than an expected, with a 14% year-over-year increase at Dick’s physical stores as customers returned to in-store shopping and an 11% decline in online revenue. Online penetration has grown from 25% of total net sales in the fourth quarter of 2019 to 27% for the fourth quarter of 2021.
For the full year, Dick’s net sales rose 28.3% to $12.29 billion. Consolidated same-store sales increased 26.5%, which followed consolidated same store sales increases of 9.9% in fiscal 2020 and 3.7% in fiscal 2019. The fiscal 2021 same store sales increase included a 42% increase in brick-and-mortar stores and an expected 9% decrease in e-commerce. Net income totaled $1.52 billion in fiscal 2021, or $13.87 per diluted share, an increase of 142% compared to fiscal 2020.
Dick’s continued to roll out new concepts in 2021, including the outdoor- and conservation-focused Public Landsand Golf Galaxy Performance Center. It also continued to expand its warehouse and deep-discount formats.
"We are extremely pleased that our team delivered the largest sales quarter in our company's history," said Lauren Hobart, president and CEO. "Our diverse category and brand portfolio, world-class omni-channel platform and strong execution continue to help us meet robust consumer demand. We are a growth company with a strong balance sheet and incredible momentum and confidence in our business. Our 2022 sales and earnings outlook establishes a new foundation for us to build on in the future."
The company ended the year with approximately $2.6 billion in cash and cash equivalents and no outstanding borrowings under its new $1.6 billion unsecured revolving credit facility.
For the full year, Dick’s expects adjusted earnings per share in a range of $11.70 to $13.10, more than analysts had been looking for. The company expects same-store sales to be down 4% to flat. Analysts had been looking for a 3.6% decline from the prior year, during which Dick’s reported a 26.5% increase.
Dick’s also announced that its board approved an 11% increase to its quarterly dividend.
The company operates more than 850 Dick;s Sporting Goods, Golf Galaxy, Field & Stream, Public Lands, Going Going Gone! and Warehouse Sale stores.