What happened

Shares of Dick's Sporting Goods, Inc. (DKS -2.08%), a leading athletic goods retailer, jumped more than 13% in early Tuesday morning trading before markets receded from their rally and erased Dick's gains. The company's original pop was from delivering a fourth quarter that topped analysts' estimates on both the top and bottom lines.

So what

Dick's net sales during the fourth quarter increased 4.7% to $2.61 billion, beating analysts' estimates of $2.56 billion. The top line was driven by a 5.3% increase in consolidated same-store sales. Adjusted earnings per share checked in at $1.32, well above analysts' estimates calling for $1.22 per share.

Woman tying an athletic shoe.

Image source: Getty Images.

"We are very pleased with our strong fourth quarter results," said Edward W. Stack, chairman and CEO, in a press release. "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."

Now what

Dick's fourth quarter capped off a strong year. Full-year consolidated same-store sales increased 3.7%, which was above the company's guidance of a 2.5% to 3% increase. Full-year adjusted earnings per share jumped 14% and it bumped up its quarterly dividend 13.6% to $0.313 per share. The retailer even posted a 15% increase in e-commerce sales during the fourth quarter, adding to its overall growth story. It was a strong quarter and a strong full year, and it reflects management's focus on improving e-commerce, inventory, floor space, and merchandising. The early gains at Dick's were erased quickly as the markets gave up their initial rally and sank lower, but make no mistake, this was a great fourth quarter for the company and its investors. Investors will now have to wait for more clarity on how the COVID-19 outbreak will impact its first quarter, as well as what impact it will have on the broader industry.