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Stock Alert: Dick's Sporting Goods Up 7% On Quarterly Results

Shares of Dick's Sporting Goods (DKS) are currently gaining nearly 7% after the sporting goods retailer's fourth-quarter profit trumped Wall Street expectations.

The Pittsburgh, Pennsylvania-based company's fourth-quarter profit dropped to $69.8 million or $0.81 per share from $102.6 million or $1.07 per share last year.
Adjusted earnings for the quarter were $1.32 a share, better than the average estimate of $1.22 per share by analysts polled by Thomson Reuters.

Adjusted results included a restructuring charge of $48.8 million for the removal of the hunt category from about 440 stores in 2020. Last August, Dick's announced that it was permanently closing its "hunt" category, which includes firearms sales.

Sales for the quarter grew 4.7% to $2.61 billion, beating analysts estimate of $2.56 billion. Same-store sales rose 5.3%.

Edward Stack, chairman and CEO, said in a statement, "Despite the compressed holiday selling season and the challenging conditions we faced with unseasonably warm weather, we delivered a 5.3% comp sales increase, supported by increases in both average ticket and transactions, as well as growth across each of our three primary categories of hardlines, apparel and footwear."

Dick's Sporting Goods expects full-year earnings of $3.60 to $4.00 per share and same-store sales ranging from flat to up 2%. Analysts expect earnings of $3.85 per share for the year.

The company also expects to open nine new DICK'S Sporting Goods stores and six new Golf Galaxy stores in 2020.

DKS is currently trading at $36.94, up $2.46 or 7.13%, on the NYSE.

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