• 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.

• Warning! GuruFocus has detected 4 Warning Sign with CSGQF.

Release Date: March 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Dick's Sporting Goods Inc (NYSE:DKS) 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.

Q & A Highlights

Q: Can you discuss the impact of tariffs on your business and how you are managing them? A: Lauren Hobart, CEO, explained that while tariffs are not specifically included in their guidance due to ongoing uncertainties, the company has diversified its production facilities to mitigate risks. Navdeep Gupta, CFO, added that they will continue to work closely with brand partners to balance pricing decisions and maintain a diversified product portfolio.

Q: How are you planning to manage preopening expenses for new stores? A: Navdeep Gupta, CFO, stated that preopening expenses will vary based on the number of new store openings. More detailed quarterly guidance will be provided in future calls.

Q: Can you elaborate on the SG&A and gross margin expectations for 2025? A: Navdeep Gupta, CFO, explained that the guidance was built around top-line sales expectations, with investments in SG&A supporting growth areas like e-commerce and footwear. The benefits of these investments are expected to show up in gross margins, particularly through initiatives like DICK'S Media Network and GameChanger.

Q: What is the strategy behind your footwear business, and how do you plan to grow it? A: Lauren Hobart, CEO, highlighted the importance of footwear as a key growth area, with a focus on premium full-service footwear decks in 90% of stores. The company plans to increase marketing efforts to position DICK'S as the destination for all footwear needs, leveraging both in-store and digital channels.

Q: How are you addressing potential inventory risks given the 18% increase in inventory levels? A: Navdeep Gupta, CFO, emphasized that the inventory increase was a deliberate decision to support strong sales momentum. The company is confident in its product assortment and expects gross margins to expand in 2025, indicating effective inventory management.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.