Dick's Sporting Goods (NYSE:DKS), the sports retailer, is trading 8% higher ahead on the market open after it hiked its dividend 10% and reported a record sales quarter.
Sales during the group’s fourth quarter, which included the festive period, rose to US$3.88 billion, edging Wall Street guidance of US$3.80 billion.
Earnings per share reached US$3.85, representing a $0.50 per share beat compared to the market’s expectations.
Net income during the three months to February 3 jumped to US$296 million, or US$3.57 per share, beating 2023’s US$236 million, or US$2.60.
Once including one-off impairment charges and inventory write-offs, earnings ticked higher to US$3.85 per share.
“With our industry-leading assortment and strong execution, we capped off the year with an incredibly strong fourth quarter and holiday season,” chief executive Lauren Hobart said.
“We are guiding to another strong year in 2024. We plan to grow both our sales and earnings through positive comps, higher merchandise margin and productivity gains.”
Looking ahead, the US sports retailer forecasts earnings per share of between US$12.85 and US$13.25, compared with Wall Street guidance of US$12.90.
Sales for the full year are expected to reach between US$13 billion and US$13.13 billion, with the market guidance leaning to the upside of the range.
“We are being conservative on the low end of our guidance…We compete with everyone in the world during the fourth quarter, and also the consumer is going through an awful lot, and we’re just trying to be cautious,” Hobart added.