Dick's Sporting Goods (DKS, Financial) has announced robust financial results for the first quarter, with revenue reaching $3.18 billion, surpassing analysts' expectations of $3.12 billion. The company also reported a solid increase in same-store sales, which rose by 4.5% during the period.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Dick's Sporting Goods Inc (DKS, Financial) is $222.27 with a high estimate of $273.00 and a low estimate of $157.21. The average target implies an upside of 27.58% from the current price of $174.22. More detailed estimate data can be found on the Dick's Sporting Goods Inc (DKS) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, Dick's Sporting Goods Inc's (DKS, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Dick's Sporting Goods Inc (DKS, Financial) in one year is $183.82, suggesting a upside of 5.51% from the current price of $174.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Dick's Sporting Goods Inc (DKS) Summary page.
DKS Key Business Developments
Release Date: March 11, 2025
- Full Year Revenue: $13.4 billion, a record for the company.
- Full Year Comparable Sales: Increased by 5.2%.
- Full Year Earnings Per Share (EPS): $14.05, up from last year's non-GAAP EPS of $12.91.
- Fourth Quarter Revenue: $3.89 billion, the largest sales quarter in company history.
- Fourth Quarter Comparable Sales: Increased by 6.4%.
- Fourth Quarter Earnings Per Share (EPS): $3.62, compared to last year's non-GAAP EPS of $3.85.
- Gross Margin Expansion: Increased by approximately 39 basis points in Q4.
- EBT Margin: 11.3% for the full year and 10.2% for Q4.
- Cash and Cash Equivalents: Approximately $1.7 billion at year-end.
- Inventory Levels: Increased by 18% compared to last year.
- House of Sport Locations: Ended 2024 with 19 locations, planning to add approximately 16 more in 2025.
- Field House Locations: Ended 2024 with 26 locations, planning to add approximately 18 more in 2025.
- Golf Galaxy Performance Center: Planning to open approximately 14 new locations in 2025.
- Dividend Increase: 10% increase to an annualized payout of $4.85 per share.
- Share Repurchase Program: New five-year program of up to $3 billion announced.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Dick's Sporting Goods Inc (DKS, Financial) reported record sales of $13.4 billion for the full year 2024, with a 5.2% increase in comparable sales.
- The company achieved a double-digit EBT margin above 11% and EPS of $14.05, both well ahead of the previous year.
- The fourth quarter saw a 6.4% increase in comparable sales, driven by growth in average ticket and transactions.
- DKS continues to gain market share, now commanding just under 9% of the $140 billion U.S. sports retail industry.
- The company is making significant investments in digital and in-store opportunities, focusing on growth areas such as real estate repositioning, footwear, and e-commerce.
Negative Points
- The guidance for 2025 reflects caution due to uncertainties in the geopolitical and macroeconomic environment.
- SG&A expenses for the fourth quarter increased by 4.8%, leading to a deleverage of 101 basis points compared to the previous year.
- Preopening expenses increased, driven by the timing of new store openings, which could impact short-term profitability.
- The company's inventory levels increased by 18% year-over-year, which could pose a risk if consumer demand does not meet expectations.
- There is ongoing uncertainty regarding tariffs, which could affect pricing and supply chain dynamics.
