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03/07/2022

Dick’s Sporting Goods reports strong Q4; expects momentum to continue

Marianne Wilson
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Dicks Sporting Goods
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.

[Read More: Dick’s Sporting Goods to open new off-price concept]

"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.