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Dick’s Sporting Goods Crushes Q4 Estimates, Touts Strong 2024 Outlook

Shares of Dick’s Sporting Goods soared on Thursday morning after the retailer reported sales and earnings figures that crushed expectations.

In the fourth quarter, the sporting goods store’s revenues were $3.88 billion, up 7.8 percent from the same quarter last year and ahead of the $3.8 billion expected by analysts surveyed by Yahoo Finance. Non-GAAP earnings per diluted share were $3.85, up 31 percent from last year and ahead of the $3.35 analysts were looking for. Comparable store sales were up 2.8 percent, with growth across footwear as well as apparel.

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The company increased its quarterly dividend by 10 percent to $1.10 per share.

“With our industry-leading assortment and strong execution, we capped off the year with an incredibly strong fourth quarter and holiday season,” said Dick’s president and chief executive officer Lauren Hobart in a statement, adding that Q4 marked the company’s largest sales quarter in history, even excluding an extra week added into the quarter.

The stock was up more than 13 percent by noon on Thursday.

For the full year, net sales were up 5 percent to $12.98 billion and EPS was up 7 percent to $12.91.

Dick’s added that in Q4 it completed its business improvement plan, part of which involved laying off a number of employees at the company’s customer service center. These changes cost the company $84.8 million in pre-tax charges related to layoffs and the integration of its Moosejaw and Public Lands operations.

Hobart said the company’s new store formats and its omnichannel experiences will drive sales and help the company gain market share in 2024. As of February, the company operated 104 Golf Galaxy stores, seven Public Lands stores, 12 House of Sport stores and 17 Going Going Gone! stores and other specialty concept stores.

For fiscal year 2024, Dick’s expects net sales of between $13 billion and 13.13 billion and earnings per diluted share of between $12.85 and 13.25. Comparable store sales are expected to be up between 1 percent and 2 percent.

“Our growth opportunities are significant, and we continue to prioritize investments in our future to fuel long-term omnichannel growth,” said Dick’s executive chairman Ed Stack in a statement. “I’d like to thank all our teammates for their hard work and unwavering dedication to our business.”

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