American retailer Dick’s Sporting Goods (DKS) has more than doubled its quarterly dividend payment after smashing expectations for its fourth-quarter earnings.
The Binghamton, New York-based retailer announced that it is raising its quarterly payout to shareholders to $1 U.S., which is an increase of 105% from the 48.75 cents U.S. it had paid previously.
The dividend increase comes as Dick’s Sporting Goods reported Q4 results that handily beat Wall Street expectations, citing a sales boost during the December holiday season.
Dick’s same-store sales rose 5.3% during Q4 2022, more than double analysts’ forecasts of 2.1% growth, according to Refinitiv data.
For the October through December quarter, Dick’s Sporting Goods reported earnings per share (EPS) of $2.93 U.S. versus $2.88 U.S. that analysts had expected.
Revenue in the quarter totalled $3.60 billion U.S. compared to $3.45 billion U.S. that was anticipated.
The sporting goods retailer said it has managed to keep sales brisk despite inflationary pressures and a slowing U.S. economy.
Looking ahead, Dick’s Sporting Goods forecast full-year earnings per share of between $12.90 U.S. and $13.80 U.S., up from $10.78 U.S. per share for fiscal 2022.
The company said it expects same-store sales growth for the current fiscal year to be flat or up 2% and added that it has resolved its supply chain issues.
Dick’s Sporting Goods’ stock has risen 33% over the last year to trade at $132.14 U.S. per share.
