Dick’s Sporting Goods Stock Falls On Disappointing Outlook Despite Q4 Earnings Beat: Retail Stays Bearish

Shares of Dick’s Sporting Goods Inc. fell nearly 6% on Tuesday following conservative guidance despite a fourth-quarter earnings beat, with retail sentiment staying downbeat. 

Dick’s Sporting Goods’ earnings per share (EPS) came in at $3.62, beating Wall Street’s expectations of $3.55. The company’s revenue stood at $3.9 billion, beating estimates of $3.8 billion.

For Q4, it posted 6.4% in comparable sales growth. For fiscal 2024, it reported a 5.2% comparable sales growth, driven by growth in average ticket price and transactions.

"Our fourth quarter was an exceptionally strong finish to another great year. With a 6.4% Q4 comp we delivered the largest sales quarter in company history,” said Lauren Hobart, president and CEO of Dick’s Sporting Goods.

"For 2025, our outlook reflects strong confidence in our strategies and operational strength while acknowledging the dynamic macroeconomic environment. With this in mind, we expect to drive continued comp growth, strategic expansion of our square footage, and improved gross margin.”

The company plans to focus on its strategic pillars, investing in three growth areas: repositioning its real estate and store portfolio, driving continued strong growth in footwear, and accelerating the eCommerce business.

The company also announced a new five-year share repurchase program of up to $3 billion of the company's common stock.

The sporting goods chain sees 2025 EPS between $13.80 and $14.40, below the consensus estimate of $14.84. It expects revenue between $13.6 billion and $13.9 billion, compared to the consensus estimate of $13.89 billion.

Retail sentiment on Stocktwits remained in the ‘bearish’ zone on Tuesday. Message volume continued in the ‘extremely high’ zone.

One bearish investor cited concerns about the current market conditions.

Another user suggested the stock price could dip below $100.

The company also declared a quarterly dividend in the amount of $1.21 per share, payable in cash on Apr. 11 to stockholders of record at the close of business on Mar. 28.

Dick’s Sporting Goods stock is down 13% year-to-date.

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