Dick's posts record sales but guidance disappoints

(Sharecast News) - Dick's Sporting Goods posted bumper holiday sales on Tuesday, but forecast full-year earnings below Wall Street estimates as concerns about the health of the US economy mount.

The retailer saw underlying sales jump 6.4% in the 13 weeks to 1 February, with net sales up 0.5% at $3.89bn, the largest sales quarter in its history.

Net earnings per diluted share rose 1% at $3.62.

Both sales and EPS were ahead of analyst forecasts.

Lauren Hobart, chief executive, said it had been an "exceptionally strong" finish to the year.

In the year to 1 February, net sales improved 3.5% to $13.44bn, while comparable sales rose 5.2%, driven by growth in average ticket and transactions. Earnings per diluted share jumped 15% to $14.05.

Looking to the current year, Hobart said: "For 2025, our outlook reflects strong confidence in our strategies and operational strength while acknowledging the dynamic macroeconomic environment."

Earnings per diluted share were forecast to come in between $13.80 and $14.40, and net sales between $13.6bn and $13.9bn. However, while the sales guidance was in line with expectations, EPS missed analyst estimates for $14.86.

Comparable sales are expected to be between 1% and 3% stronger, against a forecast for growth of 2.5%.

Markets are becoming increasingly nervous about the health of the US economy, with consumer confidence weakening and unemployment ticking up.

There are also fears that Donald Trump's chaotic imposition of tariffs will stoke inflation and push the US towards recession.

Dick's executive chair Ed Stack told CNBC: "I do think it's just a bit of an uncertain world out there right now. What's going to happen from a tariff standpoint? You know, if tariffs are put in place and prices rise they way that they might, what's going to happen with the consumer?"

As at 1330, shares in Dick's were down 2% in pre-market trading.