10:38 AM EDT, 03/11/2025 (MT Newswires) -- Dick's Sporting Goods' (DKS) sales unexpectedly rose in its key holiday quarter while earnings topped market estimates, but the athletic goods retailer issued a weak bottom-line outlook for fiscal 2025 amid a "dynamic" macroeconomic environment.

Earnings are set to come in between $13.80 and $14.40 a share for fiscal 2025, compared with the current consensus on FactSet for $14.82. In the fiscal year ended Feb. 1, earnings advanced 15% year over year to $14.05 per share. The stock was down 3.4% in Tuesday trade.

The company anticipates sales to be in a range of $13.6 billion to $13.9 billion, while comparable sales are pegged to rise by 1% to 3% for the ongoing fiscal year. The Street is looking for sales of $13.91 billion and same-store sales growth of 2.5%. In fiscal 2024, sales inclined 3.5% to $13.44 billion and comparable sales were up 5.2%.

"Our outlook reflects strong confidence in our strategies and operational strength while acknowledging the dynamic macroeconomic environment," Chief Executive Lauren Hobart said in a statement. "With this in mind, we expect to drive continued (comparable sales) growth, strategic expansion of our square footage and improved gross margin."

In an emailed client note, Truist Securities said the retailer is "being prudent and providing a conservative" outlook due to the uncertainty around consumers' appetite for spending on discretionary goods. The brokerage remains bullish that the company will continue to take market share in the athletic apparel and footwear space.

Adjusted earnings came in at $3.62 a share for the fiscal fourth quarter, down from $3.85 the year before, but ahead of the average analyst estimate of $3.52. Sales edged up to $3.89 billion from $3.88 billion last year, defying the Street's expectation for a decline to $3.78 billion.

Comparable sales climbed 6.4%, exceeding the 3.1% increase modeled by analysts. The result was buoyed by a 4.4% increase in average ticket and a 2% gain in transactions, Chief Financial Officer Navdeep Gupta said during an earnings call, according to a FactSet transcript. "This was the largest sales quarter in the history of our company," Gupta said.

The company's gross profit as a percentage of sales rose by 39 basis points on a yearly basis, driven by lower shipping costs and higher merchandise margin, Gupta told analysts. Selling, general and administrative expenses increased to $963.6 million from $956.7 million last year. At the beginning of February, net inventories stood at $3.35 billion, up from $2.85 billion a year ago.

Price: 209.90, Change: -1.12, Percent Change: -0.53