Dick's Sporting Goods warns sales may slow

eCommerce sales increased 100% for the full year 2020

Dick's Sporting Goods Inc.'s sales jumped 20% in the latest quarter, but the retail chain said it expects the growth to slow in the new fiscal year.

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The athletic gear and apparel company on Tuesday reported net income of $219.6 million for its fiscal fourth quarter that ended Jan. 30, triple the $69.8 million for the year-earlier period. Earnings per share rose to $2.21 from 81 cents.

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Dick's adjusted profit of $2.43 was 13 cents more than forecasts from analysts for that metric.

Total sales rose to $3.13 billion from $2.61 billion year over year. That was ahead of the consensus estimate compiled by FactSet.

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Like many other businesses, Dick's temporarily closed stores last year when the Covid-19 pandemic was first intensifying and then moved to reopen them.

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Demand has improved as compared with last spring, in part because consumers are ordering more goods from the company through its online offerings.

Overall, Dick's said Tuesday same-store sales rose 19% in the latest quarter. Ecommerce sales were up 57%, and made up about one-third of total sales, the company said. During the same period a year earlier, ecommerce sales accounted for about one-quarter of sales.

But Dick's reported in November a same-store sales gain of roughly 23%, a record, during its fiscal third quarter, and ecommerce sales during that period were up 95%.

The company's forecast for its new fiscal year suggests sales growth won't be as strong. For the period, same-store sales may fall 2% or rise up to 2%, the company said.

For the new fiscal year, the company forecast $9.54 billion to $9.94 billion in sales. At the midpoint, that would be up 2% compared with the prior year. In the fiscal year that ended Jan. 30, net sales rose 9.5%.

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Profit for the year is expected to range from $3.81 to $4.55 a share, down from $5.72 a share last year. Dick's said earnings, following adjustments, are also expected to be lower.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

March 09, 2021 08:15 ET (13:15 GMT)

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