Why Dick's Sporting Goods Shares Are Shooting Higher Today

Dick’s Sporting Goods Inc DKS shares are trading higher after the company reported fourth-quarter FY23 sales growth of 7.8% year-on-year to $3.876 billion, beating the analyst consensus estimate of $3.796 billion.

Comparable store sales increased 2.8% versus a 5.3% growth a year ago. Adjusted EPS of $3.85 beat the analyst consensus of $3.35.

Gross profit margin expanded 200 basis points Y/Y to 34.42%. The operating margin expanded 96 basis points to 9.60%, and operating income for the quarter climbed 19.6% to $372 million.

The company held $1.8 billion in cash and equivalents as of February 3, 2024. Total inventory at the end of the quarter increased by 1% Y/Y. The retailer ended the year with 855 stores versus 853 stores last year.

The company’s Board of Directors declared a quarterly dividend of $1.10 per share, payable in cash on April 12, 2024, to stockholders of record on March 29, 2024. 

This dividend represents an increase of 10% over its previous quarterly per share amount and is equivalent to an annualized dividend of $4.40 per share.

Outlook: Dick’s Sporting Goods sees FY24 EPS of $12.85 – $13.25 versus the consensus of $12.90. The company expects FY24 net sales of $13 billion – $13.13 billion, against an estimate of $13.131 billion.

The company sees FY24 comparable store sales growth of 1% – 2% and capital expenditure of 800 million on a net basis.

Price Action: DKS shares are trading higher by 7.47% at $201.79 in premarket on the last check Thursday.

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