What occurred

Shares of Dick’s Sporting Items (DKS -2.05%) jumped greater than 10% over the previous week, in accordance with information from S&P International Market Intelligence, after the retailer doubled its dividend.

So what

Dick’s web gross sales rose 7.3% yr over yr to $3.6 billion, pushed by a 5.3% rise in comparable-store gross sales. Each metrics topped Wall Avenue’s projections, which had referred to as for income of $3.45 billion and comp development of two.1%. Dick’s is benefiting as extra folks prioritized well being and health through the pandemic. The sporting items retailer can also be gaining market share as its much less financially sound rivals battle.

Nonetheless, provide chain challenges and stock overages took a toll on Dick’s revenue margins. Its adjusted web earnings, in flip, declined by 27% to $258 million. And its adjusted earnings per share, aided by inventory buybacks, decreased by a considerably extra average 20% to $2.93. That, too, was higher than analysts’ estimates, which had referred to as for adjusted per-share earnings of $2.88.

Now what

Administration expects Dick’s full-year earnings per share to enhance to between $12.90 and $13.80 in 2023, up from $12.04 in 2022. “As deliberate, we continued to handle focused stock overages, and consequently, our stock is in nice form as we begin 2023,” CEO Lauren Hobart mentioned in a press launch.

This projected revenue development prompted Dick’s to boost its annualized dividend by a whopping 105% to $4.00 per share.

“In 2023, we are going to develop each our gross sales and earnings by way of optimistic comps, a return to sq. footage development, and better merchandise margin,” Hobart mentioned. “Our constant efficiency and monetary power place us to extend the speed of funding in our enterprise to gas long-term development alternatives and likewise return important capital to shareholders.”