Dick's Sporting Beats On Q4 Earnings, Stock Falls Amid Soft Outlook

Dick’s Sporting Goods Inc DKS shares are trading lower in the premarket session on Thursday.

The company reported fourth-quarter adjusted earnings per share of $3.62, beating the street view of $3.53. Quarterly sales of $3.89 billion outpaced the analyst consensus estimate of $3.78 billion.

“With a 6.4% Q4 comp we delivered the largest sales quarter in Company history. For the full year, our comps increased 5.2%, we drove meaningful EBT margin expansion,” said Lauren Hobart, President and Chief Executive Officer.

In 2024, the company opened seven House of Sport and 15 DICK’S Field House locations. They plan to open 16 more House of Sport and 18 more DICK’S Field House locations in 2025.

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Gross margin for the quarter under review was 34.96%, higher than 34.42% in the year-ago period. Adjusted gross margin for the 14 weeks ended February 3 was 34.57%, while the company registered EBT margin of 10.2%.

Dividend: The company declared a quarterly dividend of $1.2125 per share, which is payable in cash on April 11, 2025 to stockholders of record at the close of business on March 28, 2025.

This dividend represents an increase of 10% over the company’s previous quarterly per share amount and is equivalent to an annualized dividend of $4.85 per share.

On March 10, the company authorized a new five-year share repurchase program of up to $3 billion of the company’s common stock. 

Outlook: Dick’s Sporting sees FY25 EPS of $13.80 to $14.40 versus $14.84 estimate. The company sees sales of $13.6 billion to 13.9 billion versus the $13.909 billion estimate.

Dick’s Sporting projects comparable sales growth of positive 1.0% to positive 3.0%.

Price Action: DKS shares are trading lower by 1.38% to $208.10 premarket at last check Tuesday.

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