Published March 11, 2014
Dick’s Sporting Goods (DKS) logged a 7% jump in fourth-quarter earnings on Tuesday as the retailer generated solid sales growth during the holiday season.
Shares of Dick’s ticked up more than 2% on the results, which largely matched ones preannounced last month.
The sports retailer said it earned $138.6 million, or $1.11 a share, last quarter, compared with a profit of $129.7 million, or $1.03 a share, a year earlier. That matched the $1.11 that analysts had called for
Revenue increased 7.9% to $1.95 billion, compared with the Street’s view of $1.94 billion. Same-store sales jumped 7.3%.
Gross margins ticked down to 32.3% from 32.6%.
Looking ahead, Dick’s said it expects to earn 51 cents to 53 cents in the first quarter, compared with projections from analysts for 54 cents. Same-store sales are seen rising 3% to 4%.
Management also reaffirmed its call for full-year EPS of $3.03 to $3.08, which is below the Street’s view of $3.10. Same-store sales are expected to increase 3% to 4%.
“As we look to 2014, we believe our robust and growing omni-channel network and exciting merchandising opportunities will support double-digit growth in earnings,” Dick’s CEO Edward Stack said in a statement.
Wall Street bid Dick’s 2.15% higher to $55.50 ahead of Tuesday’s opening bell. The gains put Dick’s on pace to trim its 2014 slide of about 6.5%.
Last month, Dick’s shares soared after the company projected fourth-quarter earnings of $1.10 to $1.11, which was above consensus calls at the time for $1.06.