Dick’s Sporting Goods (DKS) Q4 2022 earnings

Dick’s Sporting Goods on Tuesday reported holiday quarter results that beat Wall Street expectations, citing a sales boost from the gift-giving season even with inflation-weary consumers.

Same-store sales rose 5.3 per cent. during the fourth quarter more than double analysts’ estimates of 2.1%, according to StreetAccount. This metric measures sales online and in stores that have been open for 14 months or more.

The sports retailer’s performance has remained resilient in the face of an inflationary macro environment and industry-wide inventory struggles. It said on Tuesday that even amid shaky consumer demand across the sector, customers continued to buy.

Dick’s enters its next fiscal year with continued confidence. It expects earnings per share for the full year between $12.90 and $13.80, up from $10.78 a share.

It expects same-store sales growth for the financial year to be flat to up 2%.

Here’s how the company fared in the quarter ended Jan. 28 compared to what Wall Street predicted, based on a survey of analysts by Refinitiv:

• Earnings per share: $2.93, adjusted, vs. $2.88 cents expected
• Revenue: $3.60 billion vs. $3.45 billion expected

The company had net income of $236 million, down about 32% from the $346 million it reported a year earlier.

Dick’s hasn’t been completely immune to industry-wide retail problems like inventory headwinds. Supply chain disruptions led to Dick’s stockpiling products to meet pandemic-era demand, only for those products to be out of season when they arrived.

But the company feels confident it has solved its supply chain dilemma as it heads into fiscal 2023.

“As planned, we continued to address targeted inventory overruns, and as a result, our inventory is in good shape as we enter 2023,” said CEO Lauren Hobart.

The company will host a conference call at 10 ET on Tuesday.

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