DICK'S Sporting (DKS) Gains On Q4 Earnings & Sales Beat
Zacks Investment Research | Mar 10, 2020 09:23PM ET
DICK'S Sporting Goods, Inc. (NYSE:DKS) delivered robust fourth-quarter fiscal 2019 results, wherein earnings and sales surpassed the Zacks Consensus Estimate and grew year over year. The company delivered strong sales results despite the shorter holiday season this year as well as challenging weather that hurt its cold weather categories. Further, its results gained from its focus on improving service, experience and marketing across all channels.
The company’s top line reflected the impacts of a decline in hunting category sales due to the removal of the category from 125 stores in the fiscal fourth quarter. However, driven by its hunting space optimization efforts, DICK’S Sporting notes that the stores delivered positive same-store sales (comps) results even during the peak hunting season that falls in the fourth quarter. So far, the company has removed the hunting business from 135 DICK’S Sporting stores.
Taking its space optimization efforts a step forward, the company plans to remove the hunting department from nearly 440 additional DICK’S Sporting stores in the first half of fiscal 2020. This will leave the hunting business in only 12% of its stores.
Driven by the strong results and the company’s progress on space-allocation efforts, its shares grew 4% on Mar 10. However, the Zacks Rank #1 (Strong Buy) stock has slumped 26.1% in the past three months compared with the industry ’s 20.6% decline.
Q4 in Detail
In the fiscal fourth quarter, DICK'S Sporting reported earnings of $1.32 per share, surpassing the Zacks Consensus Estimate of $1.22. Additionally, the bottom line rose 23.4% from the year-ago quarter’s number.
Net sales of $2,608.7 million grew 4.7% year over year and surpassed the Zacks Consensus Estimate of $2,549 million. Consolidated same-store sales rose 5.3%, driven by higher average ticket and transactions. Further, same-store sales were aided by growth in each of its three primary categories — hardlines, apparel and footwear. E-commerce sales grew 15% year over year, which was 25% of net sales in the reported quarter compared with 23% in the prior-year quarter.
DICK'S Sporting Goods, Inc. Price, Consensus and EPS Surprise
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