Dicks Sporting Goods (NYSE: DKS) reported better than expected fourth quarter earnings as consumers continue to purchase items for outdoors activities as well as at home workouts throughout the pandemic. Nevertheless, shares fell over 6% Tuesday morning after the company predicted a slow in sales trends.
The retail giant believes that same-store sales may fall about 2% or increase by a max of 2% within the next year. The estimate is a step back from 2020’s same-store sales growth of approximately 10%. Furthermore, the company believes net sales in 2021 will be between USD9.54 Billion and USD9.94 Billion, compared to net sales of USD9.58 Billion in fiscal 2020.
“We’ve never had a year quite like 2020. We were challenged in numerous ways, as were so many others, but as an organization we not only survived – we thrived, delivering record-setting sales and earnings,” said Ed Stack, Executive Chairman and Chief Merchandising Officer. “Most importantly, we cared for each other and our communities every step of the way. We prioritized the health and safety of our teammates and athletes and invested in our frontline hourly store and distribution center teammates through our premium pay program.”
The company reported earnings of USD2.43 per share, compared to the expected USD2.28 a share. Revenue amounted to USD3.12 Billion, higher than analysts anticipated USD3.07 Billion.
“We are very pleased with our strong fourth quarter sales and earnings results,” said Lauren Hobart, President and Chief Executive Officer. “The strength of our diverse category portfolio, technology capabilities and advanced omni-channel execution once again helped us capitalize on the favorable shifts in consumer demand across golf, outdoor activities, home fitness and active lifestyle. Our performance is a testament to the strong execution from our 50,000 dedicated teammates who continued to safely serve our athletes and communities.”
Dick’s said it is set to buy back about USD200 Million of its stock during this year. Its shares have risen about 119% within the last year and its market value is USD6.87 Billion.