Dick’s Sporting Goods reported net sales increased 7.8 percent to $3.88 billion for the 14-week fiscal fourth quarter ended February 3, compared to $3.60 billion in the 13-week fiscal fourth quarter ended January 28, 2023. The 14th week contributed net sales of $170.2 million in the most recent quarter.

Comparable store sales on a 13-week basis were up 2.8 percent in the fiscal 2023 fourth quarter, cycling a 5.3 percent comp stores sales increase in the prior-year quarter.

“With our industry-leading assortment and strong execution, we capped off the year with an incredibly strong fourth quarter and holiday season,” offered Lauren Hobart, president and CEO of Dick’s Sporting Goods. “Even excluding the extra week, this was the largest sales quarter in the history of the company, and during the fourth quarter, we drove significant gross margin and EBT margin expansion. Our full-year comps increased 2.4 percent, driven by growth in transactions, and we continued to gain market share.”

Net income increased 26 percent to $296 million, or $3.57 per diluted share, in the fourth quarter, compared to $236 million, or $2.60 per diluted share, in the prior-year quarter.

Full-Year Results
Full-year revenues increased 5.0 percent to $12.98 billion for the 53-week fiscal year ended February 3, compared to $12.37 billion in the 52-week fiscal year ended January 28, 2023. The 53rd week contributed net sales of $170.2 million in the most recent quarter.

Comparable store sales on a 52-week basis were up 2.4 percent in fiscal 2023, cycling a 0.5 percent comp stores sales decline in the prior year.

Net income for the year was relatively flat at $1.05 billion, or $12.18 per diluted share, in fiscal 2023, compared to $1.07 billion, or $10.78 per diluted share, in fiscal 2022.

Balance Sheet

  • Cash & Cash equivalents declined 6 percent year-over-year at year-end to $1.80 billion, from $1.92 billion in the prior year-end,
  • Inventories inched up 1 percent at year-end to $2.85 billion, and
  • Total debt was reduced 4 percent to $1.48 billion.

As previously announced, DKS said it conducted a business optimization during the fiscal year to better align its talent, organizational design and spending to support its most critical strategies while streamlining its overall cost structure.

DKS completed its business optimization during the fourth quarter of 2023 and incurred pre-tax charges of $84.8 million related to the elimination of certain positions, primarily at its customer support center as well as the optimization of its outdoor specialty business, which included the integration of its Moosejaw and Public Lands operations, decisions about their go-forward inventory assortment and a comprehensive review of their store portfolios.

Outlook
Dick’s Sporting Goods expects full-year comparable store sales growth to be in the range of 1.0 percent to 2.0 percent and net sales in a range of $13.00 billion to $13.13 billion. Earnings per diluted share are forecasted to be in the range of $12.85 to $13.25.

The full report on Dick’s Sporting Goods’ full-year and fourth-quarter performance will be reported by SGB Executive following the retailer’s quarterly conference call with analysts.