After a strong holiday quarter, Dick's Sporting Goods anticipates continued profit growth.

• Dick's Sporting Goods exceeded analysts' expectations with its fiscal fourth-quarter profits and sales growth.
• The company is experiencing significant growth due to the increased demand for outdoor equipment and fitness accessories resulting from the pandemic.
• The company forecasted higher-than-anticipated earnings and sales for 2022.
• The board of Dick approved an 11% increase to its quarterly dividend.

The company reported profits and sales growth in its holiday quarter that exceeded analysts' estimates, due to the massive gains from the prior year that were driven by pandemic purchases of outdoor equipment and fitness accessories.

The company forecasted higher-than-anticipated earnings and sales for 2022, indicating potential for future growth after the pandemic.

In a press release, Lauren Hobart, Chief Executive of Dick's, stated that the company continues to experience strong consumer demand. She added that their 2022 sales and earnings outlook provide a solid foundation for future growth.

Dick's shares rose 2.1% on Tuesday, increasing the company's market capitalization to approximately $9 billion.

Despite the easing of pandemic restrictions and the return of shoppers to stores, retailers are still facing challenges in forecasting future growth due to the backdrop of sky-high inflation and surging oil prices resulting from Russia's invasion of Ukraine.

The uncertainty about the impact of the war's ripple effects on consumer demand in the U.S. may increase if rapid price growth continues. Companies such as Kohl's and Victoria's Secret have mentioned this concern in recent days, stating that they still expect strong earnings this year once supply chain obstacles are resolved.

According to a survey of analysts by Refinitiv, how Dick's performed in its fourth quarter differed from Wall Street's expectations for that period.

• Earnings per share: $3.64 adjusted vs. $3.43 expected
• Revenue: $3.35 billion vs. $3.31 billion expected

Dick's reported net income for the three-month period ended Jan. 29 was $346.1 million, or $3.16 per share, which is higher than the income of $219.6 million, or $2.21 a share, recorded in the previous year.

Dick's exceeded earnings estimates by $0.21 per share, with earnings of $3.64 per share.

Sales at Dick's Sporting Goods increased by 28.5% on a two-year basis, surpassing estimates of $3.31 billion with revenue of $3.35 billion.

According to StreetAccount, same-store sales increased by 5.9%, surpassing the predicted 4.3% growth rate.

Dick's retail stores experienced a 14% year-over-year increase in same-store sales, while their online revenue declined by 11% compared to the previous year. Last year, e-commerce sales had surged 57%, with consumers purchasing kayaks, golf clubs, athletic apparel, and other accessories for physical activities on Dick's website during the holiday months.

According to Refinitiv, Dick's expects adjusted earnings per share to be between $11.70 and $13.10 for the full year, which is lower than the analysts' forecast of $11.31.

Dick's reported a 26.5% increase in same-store sales, but analysts had predicted a 3.6% decline from the prior year, which would have been a 4% decrease.

Dick announced an 11% increase to its quarterly dividend on Tuesday.

Find the full earnings press release from Dick’s here.