DICK'S SPORTING GOODS, INC. Q4 FY2024 earnings call

• Strategic pillars include compelling omnichannel athlete experience, differentiated product assortment, deep brand engagement, and strong culture. - Key growth areas: - Repositioning real estate and store portfolio with House of Sport, Field House, and Golf Galaxy performance center. Ended 2024 with 19 House of Sport locations, expects 16 more in 2025 and 75-100 by 2027; ended 2024 with 26 Field House locations, expects 18 more in 2025. - Driving strong growth in footwear business with premium full service footwear decks in 90% of locations, targeting share gain through marketing and channel focus. - Accelerating ecommerce business with technology investments, leveraging store network for online fulfillment, and expanding RFID technology. - GameChanger, a profitable SaaS platform, surpassed $100 million in revenue in 2024 and expects $150 million in 2025. Dick’s Media Network is an emerging retail media network harnessing Scorecard loyalty program data.

For the full year 2024, Dick’s Sporting Goods delivered record sales of $13.4 billion. Comp sales increased 5.2% driven by growth in average ticket and transactions. EBIT margin was above 11% and EPS was $14.05. In the fourth quarter, comp sales increased 6.4%, consolidated net sales were $3.89 billion (the largest sales quarter in company history), gross profit was $1.36 billion (34.96% of net sales), EBIT was $397.3 million (10.2% of net sales), and EPS was $3.62. Dick’s commands just under 9% of the $140 billion U.S. sports retail industry, an increase of approximately 50 basis points from the prior year.

• Consolidated sales expected to be in the range of $13.6 billion to $13.9 billion. - Comp sales growth expected in the range of 1% to 3%, which at the midpoint represents nearly a 10% three-year comp stack. - EPS expected in the range of $13.80 to $14.40. - Announced a 10% increase in quarterly dividend to an annualized payout of $4.85 per share and a new five-year share repurchase program of up to $3 billion.

• Dynamic macroeconomic environment with uncertainties. - Evolving nature of tariffs and geopolitical risks that could impact results. - Uncertainty around the impact of changing market conditions on sales and profitability.

Q: Adrienne Yih with Barclays asked about tariffs and pre-opening expenses.

A: Navdeep Gupta discussed that tariffs are evolving and unknown, and pre-opening expenses vary by new store openings with more clarity to come in subsequent calls.

Q: Simeon Gutman with Morgan Stanley inquired about how the guide was built.

A: Navdeep Gupta explained that it started with top line sales expectations, factored in SG&A investments, and balanced against confidence in product portfolio.

Q: Kate McShane with Goldman Sachs asked about footwear strategy.

A: Lauren Hobart detailed the footwear strategy including premium full service decks, marketing, technology enhancements, and focus on assortment and access.

Q: Brian Nagel with Oppenheimer asked about consumer weakness and product innovation.

A: Lauren Hobart stated no weaker consumer seen, and there is significant product innovation from brand partners.

Q: Michael Lasser with UBS asked about flexibility and SG&A run rate.

A: Lauren Hobart and Navdeep Gupta discussed flexibility in managing business and that SG&A investments have long-term benefits.

Q: Christopher Horvers with JP Morgan asked about alternate profit pools.

A: Lauren Hobart explained the potential of GameChanger and Dick’s Media Network as long-term gross margin contributors.