Dick's Sporting Goods tops profit targets, removes hunting merch from 440 stores
Retail chain raises dividend nearly 14%
Dick's Sporting Goods shares jumped 12.2% in Tuesday premarket trading after the retailer reported fourth-quarter earnings that beat expectations. Net income totaled $69.8 million, or 81 cents per share, down from $102.6 million, or $1.07 per share, last year.
Adjusted earnings of $1.32 per share exceeded the FactSet consensus for $1.22 per share. Adjusted earnings include a $48.8 million pre-tax restructuring charge for the newly-announced removal of the hunt category from about 440 stores in 2020.
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The hunt category includes guns. Sales of $2.61 billion were up from $2.49 billion and beat the $2.56 billion FactSet consensus.
Same-store sales rose 5.3%, blowing past the 3% increase FactSet forecast. Dick's Sporting Goods raised its dividend 13.6% to $0.3125 per share payable on March 27, 2020, to stockholders of record at the close of business March 20, 2020. For 2020, Dick's Sporting Goods expects earnings of $3.60 to $4 a share and same-store sales that will be flat to up 2%.
DICK'S SPORTING GOODS DESTROYS $5M OF HIGH-POWERED RIFLES
The outlook includes the impact of the coronavirus. The FactSet forecast is for EPS of $3.84 and a same-store sales increase of 3.1%. Dick's Sporting Goods stock has fallen 8.9% over the last year while the S&P 500 index is up 0.1% for the period.