DICK’S Sporting Goods (DKS) Q4 2021 earnings summary

Executive summary

• FY2020 net sales rose 9.5% to $9.584B; consolidated same-store sales increased 9.9%, and eCommerce sales doubled to ~30% of net sales.

• GAAP diluted EPS was $5.72 and adjusted non-GAAP diluted EPS was $6.12; net income reached $530.3M.

• Demand in golf, outdoor activities, home fitness and active lifestyle helped offset temporary store closures and canceled team sports seasons.

Financial highlights

• Gross profit rose 19.4% to $3.051B; operating income increased to $741.5M from $375.6M.

• Net income was $530.3M versus $297.5M; GAAP diluted EPS was $5.72 versus $3.34.

• FY2020 included ~$175M of pre-tax teammate compensation and safety costs; adjusted non-GAAP EPS was $6.12, excluding convertible-note discount amortization and including the bond-hedge share impact.

• Operating cash flow was $1.553B; cash and equivalents ended the year at $1.658B, with no revolving-credit borrowings outstanding.

Outlook and guidance

• FY2021 net capital expenditures expected at $275M–$300M, focused on stores, golf services, technology, productivity and new-store development.

• FY2021 plans included ~6 new stores and 11 relocations, 2 new Golf Galaxy stores, 2 Public Lands conversions and 4 outlet openings.

• At least $200M of share repurchases planned for FY2021; curbside pickup expected to remain a meaningful omni-channel service.

• ~$30M of COVID-related safety costs anticipated in H1 FY2021.