Dick’s Sporting Goods, Inc. reported revenues for the fiscal fourth quarter increased 7.3 percent to $3.60 billion for the period ended January 28, compared to $3.35 billion in the prior-year comparable quarter. Comp-store sales increased 5.3 percent in Q4 on top of the 6.6 percent increase in the prior-year period.

Net income fell 32 percent to $236 million, or $2.60 per share, for the fourth quarter. On an adjusted basis, earnings in the quarter were down 27 percent to $258 million, or $2.93 a share, from $352 million, or $3.64, in the prior-year comparable quarter.

EPS of $2.93 on an adjusted basis topped Wall Street’s consensus estimate of adjusted EPS of $2.88. Sales of $3.60 billion were ahead of Wall Street’s consensus estimate of $3.45 billion.

“Our fourth quarter was a strong ending to another strong year,” said Lauren Hobart, president and chief executive officer. “We achieved record quarterly sales and our comps grew 5.3 percent as we continued to gain market share. As planned, we continued to address targeted inventory overages, and as a result our inventory is in great shape as we start 2023. We couldn’t be more excited about our spring assortment.”

For 2023, Dick’s predicted full-year earnings per share between of $12.90 and $13.80, up from $12.04 per share on an adjusted basis for fiscal 2022 and above Wall Street’s consensus estimate of $12.03.

Full-year revenues inched up 0.6 percent to $12.37 billion. Comps were down 0.5 percent for the year after posting a 27.4 percent increase in the prior year.

In the year, net income fell 31 percent to $1.04 billion, or $10.78 per share, from $1,52 billion, or 13.87, a year ago. On an adjusted basis, earnings were also down 31 percent to $1.07 billion, or $12.04, from $1.54 billion, or $15.70, the prior year.

Inventories were up 23 percent to $2.83 billion at the end of the year. Cash & Cash Equivalents was down 27 percent at year-end to $1.92 billion. Total Debt was down 20 percent to $1.54 billion at year-end.

On March 6, 2023, the company’s Board of Directors authorized and declared a quarterly dividend in the amount of $1.00 per share on the company’s Common Stock and Class B Common Stock. The dividend is payable in cash on March 31, 2023 to stockholders of record at the close of business on March 17, 2023. This dividend represents an increase of 105 percent over the company’s previous quarterly per-share amount and is equivalent to an annualized dividend of $4.00 per share.

“Our 2022 results provide a strong foundation upon which we will build in 2023 and well into the future,” Hobart stressed. “In 2023, we will grow both our sales and earnings through positive comps, a return to square footage growth and higher merchandise margin. Our consistent performance and financial strength position us to increase the rate of investment in our business to fuel long-term growth opportunities, and also return significant capital to shareholders. The step-change increase in our dividend clearly reflects our strong conviction in our structurally higher sales and earnings.

2023 Outlook

  • Earnings per diluted share $12.90 to $13.80
    • Includes approximately 20 cents per diluted share for the 53rd week
    • Based on approximately 88 million diluted shares outstanding
    • Based on an effective tax rate of approximately 22 percent
  • Comparable store sales flat to positive 2.0 percent on a 52-week basis
  • Capital expenditures
    • $670 to 720 million on a gross basis
    • $550 to 600 million on a net basis

Ed Stack, executive chairman, noted, “Following two consecutive record years, we are very pleased with our 2022 performance, which was the largest sales year in our company’s history. These results and our 2023 outlook demonstrate the strength of our business as we continue to execute our multi-year transformation through focused strategies and strong execution. I’d like to thank all our teammates for their hard work and unwavering dedication to our business.”