10:34 AM EDT, 03/14/2024 (MT Newswires) -- Dick's Sporting Goods (DKS) posted results above market estimates for its key holiday quarter, while the athletic goods retailer on Thursday issued an upbeat earnings outlook for the current fiscal year.

Adjusted earnings were $3.85 a share for the fourth quarter ended Feb. 3, up from $2.93 the year before, surpassing the Capital IQ-polled consensus of $3.36. Sales advanced 7.8% to about $3.88 billion, topping the Street's view of $3.79 billion.

Comparable sales grew 2.8%, beating the 0.8% increase modeled by analysts. The sales were buoyed by a 2.8% rise in average ticket on flat transactions, Chief Financial Officer Navdeep Gupta said during an earnings call, according to a Capital IQ transcript. The retailer's stock surged 14% in Thursday trading.

"On a 13-week comparable basis, this was the largest sales quarter in the history of the company," according to Gupta. "Within our portfolio, we were very pleased with the performance of our key holiday category, modestly offset by the performance of our outerwear business due to warm weather."

The company's adjusted gross margin expanded by more than 200 basis points, "driven by higher merchandise margin of 124 basis points, as well as lower supply chain costs and leverage on occupancy costs," Gupta said on the call. Selling, general and administrative expenses widened to $958.6 million from $853.1 million. At the end of the quarter, net inventories stood at $2.85 billion versus $2.83 billion a year ago.

For fiscal 2024, Dick's anticipates profit of $12.85 to $13.25 per share and sales of $13 billion to $13.13 billion. The Street is looking for GAAP EPS of $12.91 and revenue of $13.05 billion. In the just-ended fiscal year, EPS climbed 13% to $12.18, and sales inclined 5% to $12.98 billion.

The retailer also expects comparable store sales growth of 1% to 2% for the fiscal year, while analysts' current estimate is for a 1.8% gain. Same-store sales increased 2.4% in fiscal 2023. "We plan to grow both our sales and earnings through positive comps, higher merchandise margin and productivity gains," Chief Executive Lauren Hobart said in a statement.

The company's board also increased its quarterly dividend by 10% to $1.10 a share. The dividend is payable April 12 to shareholders of record on March 29.

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