Athletic gear and apparel retailer Dick's Sporting Goods reported its fourth-quarter earnings results Tuesday morning. DKS stock broke out following results.
Adjusted earnings fell for the fourth quarter in a row, swooning 19.5% to $2.93 per share. Sales grew 7.3% to $3.59 billion. That beat analyst expectations of a 20.9% earnings drop to $2.88 per share on a 3% increase in revenue to $3.45 billion.
Comparable-store sales growth edged down 1.3% over the year to 5.3% for Q4, but still beat the FactSet consensus forecast of 2.1% growth.
"Following two consecutive record years, we are very pleased with our 2022 performance, which was the largest sales year in our company's history," Executive Chairman Ed Stack wrote in the earnings release.
Full-year net sales edged up 0.6% to a record $12.37 billion for 2022, but were up 41.3% from 2019 sales prior to the pandemic. Full-year adjusted earnings fell 23% to $12.04 per share.
For fiscal 2023, Dick's Sporting sees earnings ranging from $12.90 to $13.80 per share. The company expects comparable-store sales to range from flat to up 2%. It puts net capital expenditures in a range from $550 million to $600 million, up from $328 million in 2022. FactSet forecasts full year earnings at $11.96 per share with a 1.3% decline in comparable sales.
The Dick's Sporting Goods board also authorized a 105% increase to its annualized dividend, bringing it to $4 per share. The company declared a quarterly dividend of $1 per share.
DKS Stock
DKS stock surged 11% Tuesday to 146.78, breaking out of its ascending base pattern after surpassing the 138.53 buy point indicated in MarketSmith.
Ascending bases are rarer trading patterns that typically consist of three pullbacks, ranging from 10% to 20% from the most recent high to low, with each marking a higher high and higher low.
DKS stock initiated the first pullback on Dec. 13 and the stock ascended 24% from its Dec. 22 low of 106.51. Shares are trading just above the buy zone for the pattern, which extends 5% beyond the buy point and stretches to 145.46.
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