Dick’s Sporting Goods (NYSE:DKS) on Tuesday topped Wall Street’s fourth-quarter estimates, as shoppers continued to buy equipment and apparel for outdoor activities and home workouts during the pandemic.
The sporting goods retailer estimated that same-store sales could decline as much as 2% or grow by as much as 2% in the year ahead, a significant drop from same-store sales growth of nearly 10% in fiscal 2020.
It estimated net sales for the year ahead will range between $9.54 billion and $9.94 billion, flat or slightly down compared with its net sales of $9.58 billion in fiscal 2020.
Dick’s reported fourth-quarter net income of $219.6 million, or $2.21 per share, up from $69.8 million, or 81 cents per share, a year earlier. Excluding one-time charges, the company earned $2.43 per share, higher better than the $2.28 expected by analysts.
Net sales climbed to $3.13 billion from $2.61 billion a year earlier, higher than the $3.07 billion forecast by analysts.
Same-store sales rose by 19.3% in the fourth quarter, better than the growth of 17.1% expected by experts. E-commerce sales grew by 57% during the period.
Dick’s sales have picked up during the pandemic, as shoppers have bought golf clubs, workout tops and other items to stay in shape and pass the time during the pandemic.
Activewear has been a popular, but increasingly competitive category, as retailers including Target (NYSE:TGT), Kohl’s (NYSE:KSS), Gap-owned (NYSE:GPS) Athleta and Lululemon (NASDAQ:LULU) all vie for more market share.
DKS shares dropped $3.26, or 4.3%, to $73.39.
