Dick’s Sporting Goods Inc. DKS -6.34% reported strong demand for its latest quarter but said it expects sales to slow down this year.
The retailer on Tuesday said sales for its fiscal fourth quarter rose 20% to $3.13 billion. Profit of almost $220 million was roughly triple that of a year earlier, and adjusted earnings were ahead of forecasts from analysts.
Consumer interest in items like bicycles, golf equipment and other so-called hardline products was robust in the quarter, according to Dick’s Chief Executive Lauren Hobart. “Hardlines were really quite a champion,” she said on an investor call.
The gains for the period ended Jan. 30 capped a strong year for Dick’s, which temporarily closed stores last spring as the pandemic began to spread. Like other retailers, the company bolstered its e-commerce operation to continue to reach shoppers adjusting to new work and lifestyle patterns. Dick’s e-commerce sales during the fourth quarter rose 57%, accounting for about one-third of total sales.
Now, Dick’s faces the challenge of building on last year’s strong gains. Other retail chains, such as Walmart Inc., have also said they believe growth will slow.
Dick’s said annual sales, which rose nearly 10% on a comparable basis last year, could fall as much as 2% or increase by that margin this year. Per-share earnings are expected to decline.
The company has a new store prototype covering 100,000 square feet that it anticipates opening in April in the Rochester, N.Y., area, according to a spokesman.
The newly conceived Dick’s Sporting Goods House of Sport will include assets like an outdoor field and wellness spaces, allowing Dick’s to offer events and test out store experiences that could be applied more broadly to the chain, Ms. Hobart said.
Shares of Dick’s traded down 5.7% Tuesday afternoon.
Write to Micah Maidenberg at [email protected]
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