DICK’S Sporting Goods (DKS) Q4 2024 earnings summary

Executive summary

• FY23 net sales reached a record $12.984B, up 5.0%; comparable sales rose 2.4%, driven by transaction growth and market-share gains.

• Sales grew 48% since FY19 to $13.0B, and estimated sporting-goods market share reached ~8.5%, up ~50 bps from 2022.

• Priorities include omnichannel growth, new store formats, higher merchandise margin and productivity gains.

Financial highlights

• Q4 net sales were $3.876B, up 7.8%; comparable sales rose 2.8% on a 13-week basis. Excluding the 53rd week, sales were $3.706B versus $3.597B.

• Q4 GAAP net income was $296.4M and diluted EPS was $3.57; adjusted net income was $320.3M and adjusted diluted EPS was $3.85.

• FY23 GAAP net income was $1.047B and diluted EPS was $12.18; adjusted diluted EPS was $12.91.

• FY23 non-GAAP gross margin was 35.01%, up 36 bps; non-GAAP EBT was $1.403B and EBT margin was 10.80%.

• FY23 net capital expenditures were $520.4M, net of landlord construction allowances.

Outlook and guidance

• FY24 net sales guidance is $13.0B–$13.13B, comparable-sales growth is 1.0%–2.0%, and diluted EPS guidance is $12.85–$13.25.

• FY24 gross margin is expected near 35%; SG&A is expected to leverage modestly, with EBT margin of 10.9% at the midpoint.

• FY24 capital expenditures are expected to be $900M gross and $800M net; guidance assumes ~83M diluted shares and a ~24% effective tax rate.