Dick’s Sporting Goods Raises Quarterly Payout

Image Source: TradingView

By Brian Nelson, CFA

On March 11, Dick’s Sporting Goods (DKS) reported better than expected fourth quarter fiscal 2024 results, with both revenue and non-GAAP earnings per share outpacing the consensus forecasts. Net sales advanced 0.5% in the quarter on a year-over-year basis thanks in part to a 6.4% increase in comparable sales. Non-GAAP net income, however, fell 6% in the 13 weeks ended February 1, 2025. Non-GAAP earnings per share also dropped 6%.

Management was upbeat in the press release:

The convergence of sport and culture in our country has never been stronger, and with a series of major sporting events set to take place in the U.S., this momentum is only expected to grow through 2030 and beyond. As a company rooted in sport, DICK’S is uniquely positioned to seize this opportunity, and we are making strategic investments in real estate, in-store enhancements, and digital experiences to further expand our market share.

Our fourth quarter was an exceptionally strong finish to another great year. With a 6.4% Q4 comp we delivered the largest sales quarter in Company history. For the full year, our comps increased 5.2%, we drove meaningful EBT margin expansion, and we gained significant market share. I’d like to thank all our teammates for their hard work and unwavering dedication to our business — at DICK’S, it’s our people who make us great, and this strong performance is a direct result of their efforts.

For 2025, our outlook reflects strong confidence in our strategies and operational strength while acknowledging the dynamic macroeconomic environment. With this in mind, we expect to drive continued comp growth, strategic expansion of our square footage, and improved gross margin. Leaning into our strategic pillars, we are investing in three exciting growth areas, each with significant potential: repositioning our real estate and store portfolio, driving continued strong growth in footwear, and accelerating our eCommerce business. With a clear strategy, a disciplined approach, and a commitment to innovation, we are well-positioned to drive sustained sales and profitability growth over the long-term and seize the significant market share opportunity ahead of us.

Dick’s Sporting Goods continues to be shareholder friendly, with the board authorizing a 10% increase in its quarterly dividend, to $4.85 on an annualized basis, and a new five-year share repurchase program up to $3 billion. Looking to 2025, Dick’s Sporting Goods expects full year comparable sales growth to be in the range of 1%-3%, net sales to be in the range of $13.6-$13.9 billion, and earnings per diluted share in the range of $13.80-$14.40, the latter compared to $14.05 in full year 2024. The company expects to open roughly 16 additional House of Sport locations and about 18 additional Dick’s Field House locations in 2025. Dick’s Sporting Goods ended its fiscal year with $1.69 billion in cash and cash equivalents and total debt of $1.48 billion. We continue to like Dick’s Sporting Goods as an idea in the Dividend Growth Newsletter portfolio.

—–