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Dick’s Sporting Goods reports strong sales and earnings growth

By Prachi Singh

8 Mar 2022

Business

Image: Dick's Sporting Goods, PR newswire

Dick’s Sporting Goods, Inc reported net sales for the fourth quarter of 3.35 billion dollars, an increase of 7.3 percent compared to the fourth quarter of 2020 and a 28.5 percent increase compared to the fourth quarter of 2019.

Consolidated same store sales for the quarter increased 5.9 percent, which followed consolidated same store sales increases of 19.3 percent in the fourth quarter of 2020 and 5.3 percent in the fourth quarter of 2019.

"We are extremely pleased that our team delivered the largest sales quarter in our company's history," said Lauren Hobart, the company’s president and CEO, adding, “Our 2022 sales and earnings outlook establishes a new foundation for us to build on in the future."

Dick’s Sporting Goods posts strong Q4 sales and earnings growth

The company said that the current quarter same store sales increase included a 14 percent increase in brick-and-mortar stores and an 11 percent decrease in ecommerce sales, which followed a 57 percent increase in ecommerce sales in the fourth quarter of 2020.

Driven by strong sales and merchandise margin rate expansion, the company reported consolidated net income of 346.1 million dollars or 3.16 dollars per diluted share, an increase of 43 percent compared to the fourth quarter of 2020 and an increase of 290 percent compared to the fourth quarter of 2019.

On a non-GAAP basis, the company reported consolidated net income for the fourth quarter of 352.1 million dollars or 3.64 dollars per diluted share, an increase of 50 percent compared to the fourth quarter of 2020 and an increase of 176 percent compared to the fourth quarter of 2019.

Dick’s Sporting Goods full year net sales increase 28.3 percent

For the full year, the company’s net sales were 12.29 billion dollars, an increase of 28.3 percent compared to fiscal 2020 and 40.5 percent compared to fiscal 2019.

Consolidated same store sales increased 26.5 percent in fiscal 2021, which followed consolidated same store sales increases of 9.9 percent in fiscal 2020 and 3.7 percent in fiscal 2019. The fiscal 2021 same store sales increase included a 42 percent increase in brick-and-mortar stores and an expected 9 percent decrease in ecommerce sales which included a period of temporary store closures, which followed a 100 percent increase in ecommerce sales in fiscal 2020.

The company reported consolidated net income of 1.52 billion dollars in fiscal 2021, or 13.87 dollars per diluted share, an increase of 142 percent compared to fiscal 2020 and an increase of 315 percent compared to fiscal 2019.

On a non-GAAP basis, the company reported consolidated net income of 1.54 billion dollars in fiscal 2021 or 15.70 dollars per diluted share, an increase of 157 percent compared to fiscal 2020 and an increase of 325 percent compared to fiscal 2019.

Dick’s Sporting Goods projects expectations for FY22

For fiscal 2022, based on an estimated 112 million diluted shares outstanding, the company currently projects earnings per diluted share to be approximately 9.96 dollars to 11.13 dollars. The company reported earnings per diluted share of 13.87 dollars in fiscal 2021.

After adjusting for interest expense and share dilution relating to its convertible senior notes, the company currently projects non-GAAP earnings per diluted share to be approximately 11.70 dollars to 13.10 dollars. The company reported non-GAAP earnings per diluted share of 15.70 dollars in fiscal 2021.

Consolidated same store sales are currently expected to be in the range of negative 4 percent to flat.

On March 7, 2022, the company's board of directors declared a quarterly dividend of 0.4875 cents per share, which represents an increase of 11 percent over the company's previous quarterly per share amount and is equivalent to an annualised dividend of 1.95 dollars per share.

The company paid 603 million dollars in dividends to stockholders in fiscal 2021, which included a special dividend of 5.50 dollars per share on the company's common stock and class B common stock.

Dick's Sporting Goods