DKS Earnings Prediction
The chart below shows how DKS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DKS sees a -0.99% change in stock price 10 days leading up to the earnings, and a +2.14% change 10 days following the report. On the earnings day itself, the stock moves by +1.72%. This data can give you a slight idea of what to expect for the next quarter's release.
DKS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.88B
7.77%
27.40%
Gross Margin
34.42%
6.17%
-1.35%
Operating Margin
9.65%
11.69%
7.58%
Net Margin
7.65%
16.79%
15.73%
EPS
3.57
38.37%
49.37%
No Data Available
DKS Earnings Analysis
DICK'S Sporting Goods Inc Corporation (DKS.N) Earnings Conference Call
Positive
Earnings Beat Expectations: DICK’S Sporting Goods, Inc. beats earnings expectations with reported EPS of $3.62, exceeding expectations of $3.52.
Record Sales Achievement: Record sales of $13.4 billion for the full year, with a 5.2% increase in comparable sales driven by growth in average ticket and transactions.
Quarterly Comp Growth: Fourth quarter comps increased 6.4%, building on a 2.9% increase in 2023 and a 5.3% increase in 2022, showcasing strong performance.
Market Share Increase: The company gained approximately 100 basis points of market share, now commanding just under 9% of the $140 billion sports retail industry.
Omnichannel Sales Success: House of Sport locations generated approximately $35 million in year one omnichannel sales, attracting more athletes and driving higher spending.
Expansion of House of Sport: Plans to open approximately 16 more House of Sport locations in 2025, aiming for a total of 75 to 100 locations by 2027.
Footwear Market Expansion: Footwear business continues to grow, with strategic investments in marketing and partnerships to enhance market share.
Ecommerce Expansion Strategy: Ecommerce business is expected to expand significantly, with investments in technology and marketing to drive long-term growth.
Revenue Milestone Achievement: GameChanger platform surpassed $100 million in revenue in 2024, with a projected revenue of approximately $150 million in 2025.
Sales Growth Potential: Dick’s Media Network is gaining initial interest and is expected to drive long-term sales growth and gross margin expansion.
Capital Return Strategy: The company plans to return significant capital to shareholders, announcing a 10% increase in quarterly dividends and a new $3 billion share repurchase program.
Negative
Q4 Net Sales Increase: Consolidated net sales for Q4 increased only 0.5% to $3.89 billion, which was impacted by a $200 million unfavorable comparison due to the extra week last year and a calendar shift.
EBIT Margin Decline: EBIT margin in Q4 decreased to 10.2% from 11.03% in the previous year, negatively affected by the extra week last year and the calendar shift.
Earnings Per Share Decline: Earnings per diluted share for Q4 fell to $3.62, down from $3.85 in the previous year, with a $0.29 impact from the extra week and calendar shift.
SG&A Expense Increase: SG&A expenses for Q4 increased by 4.8% to $957.6 million, leading to a deleverage of 101 basis points compared to last year, attributed to strategic investments and higher incentive compensation.
Inventory Increase Concerns: Inventory levels increased by 18% compared to last year, which could indicate potential overstocking issues.
Comp Sales Growth Outlook: The company anticipates comp sales growth of only 1% to 3% for 2025, which may reflect a slowdown in growth compared to previous years.
Declining Interest Income Impact: Interest income is expected to decline due to a lower interest rate environment, which could impact overall profitability.
Tariff Impact Uncertainty: The guidance does not account for potential changes in tariffs, indicating uncertainty in future costs and pricing strategies.
DKS FAQs
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DKS Earning Call Sentiment
DICK’S Sporting Goods, Inc. (NYSE:DKS) Q4 2024 Earnings Call Transcript
DKS.N
-3.65%Positive
Despite some uncertainties around tariffs and unclear details on gross margin expansion, the earnings call reflects strong fundamentals: record full-year sales, a significant increase in comp sales, and a robust shareholder return plan with increased dividends and share repurchases. The positive guidance on EPS and net sales, along with the strategic expansion plans, outweigh the slight EPS decline. The market is likely to react positively, driven by the strong financial metrics and optimistic future outlook.
