Dick’s Sporting Goods stock remains boosted following Q4 earnings beat

The Yahoo Finance Live team discusses the latest movements for Dick's Sporting Goods stock.

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DAVE BRIGGS: A trending ticker on Yahoo Finance, which is Dick's Sporting Goods, putting some big points on the scoreboard today, shares surging more than 10% on a very strong Q4 earnings beat. Dick's same store sales increased 5.3%, more than double analysts' estimates. Guidance also topped expectations, net sales up more than 40% from 2019. That's pre-COVID. Their CFO, Navdeep Gupta, explained that approximately 80% of the company's sales growth compared with 2019 driven by growth in footwear, athletic apparel, team sports, and golf. So we are getting in shape-- some of us-- thus far in earnings season.

The story has been about the cautious consumer, but that does apparently not apply to sporting goods and sporting apparel. I guess you can compare this closely to a shift from goods to services and that this is an experience. The retail-- the consumer is still shopping on doing things. Maybe that's how you justify this, unless you just think they operated extraordinarily well.

SEANA SMITH: Yeah, well, CEO Lauren Hobart, she justified it by saying that sportswear, that this type of stuff is a necessity, not so much in discretionary spending. She's saying that people need to do this. The argument that she's making, that's why she said that we saw such a jump here. But clearly, the improvement on inventory, I think, is what caught a lot of people, at least in terms of analysts on the Street, by surprise. That improvement there one of the big standout parts of this most recent quarter. I have some questions, though, about the momentum, whether or not that's going to be able to continue here for Dick's Sporting Goods, given the fact that so many consumers are pulling back on spending. I need a little bit more of convincing--

DAVE BRIGGS: Same store sales.

SEANA SMITH: --that-- yeah.

DAVE BRIGGS: Their net sales were up 40% from pre-COVID, and you're not convinced by that number?

SEANA SMITH: That the trend is going to continue, I don't know. I think right now, at least for the holiday quarter, the sales were very strong. Whether or not people actually do view a lot of things that are sold in Dick's as necessity, not so much discretionary--

DAVE BRIGGS: I agree there.

SEANA SMITH: --I'm not convinced.

DAVE BRIGGS: Found the common thread.

ALLIE CANAL: I just think it's funny that sports is like the savior to all these sectors that are struggling. Cable? Well, we have sports. Streaming? Let's buy sports rights. Apparel? Well, our sports inventory is doing well.

DAVE BRIGGS: What have I been telling you for the last year?

SEANA SMITH: People love sports.

ALLIE CANAL: My gosh, sports, it's like, it's people are obsessed. So that's my biggest takeway.

SEANA SMITH: All about sports. That's the big takeaway from "Triple Play" today. All right, Allie Canal, thanks so much.