Dick’s Sporting Goods, the renowned athletic goods retailer, has experienced a significant rebound in sales and profits during the third quarter. This impressive performance has led the company to raise its full-year guidance, following a previous reduction due to concerns over theft.
In a news release, the company expressed its excitement for the upcoming holiday season, attributing its optimism to the robust back-to-school sales it witnessed. This positive news has caused shares to surge over 8% in premarket trading.
During the fiscal third quarter, Dick’s Sporting Goods exceeded expectations on both the top and bottom lines. The company reported adjusted earnings per share of $2.85, surpassing the anticipated $2.44, while its revenue amounted to $3.04 billion, compared to the projected $2.94 billion. Notably, Dick’s reported a net income of $201 million, or $2.39 per share, for the quarter, down from $228 million, or $2.45 per share, the previous year.
Despite the dip in net income, sales demonstrated growth, rising to $3.04 billion, a 2.8% increase compared to $2.96 billion in the same period last year. Encouraged by these positive results, Dick’s Sporting Goods now expects earnings per share for the full year to range between $11.45 and $12.05, higher than the previous forecast range of $11.27 to $12.39. However, the revised guidance still falls short of the initial outlook of $12.90 to $13.80 set earlier this year.
Dick’s has also slightly raised its outlook for comparable sales, anticipating an increase between 0.5% and 2%. This upward revision in guidance outperforms the previous projection of flat to up 2%. While the company remains cautiously optimistic as it enters the holiday season, the anticipated comparable sales growth is poised to surpass analysts’ expected 0.7% increase.
President and CEO Lauren Hobart expressed satisfaction with the company’s third-quarter results. Hobart attributed the success to their best-in-class athlete experience and a differentiated assortment, which enabled Dick’s to gain market share as consumers chose their products to meet their needs.
Despite facing challenges earlier this year, such as organized retail crime and aggressive markdowns, Dick’s Sporting Goods is confident in its strategies and optimistic about the upcoming holiday season. The company remains dedicated to providing athletes with exceptional products, services, and experiences.
Frequently Asked Questions
1. What led to Dick’s Sporting Goods lowering its full-year outlook previously?
Dick’s Sporting Goods reduced its full-year outlook earlier due to concerns over theft and aggressive markdowns, resulting in a 23% drop in profits.
2. How did Dick’s Sporting Goods perform in the third quarter?
Dick’s Sporting Goods exceeded Wall Street’s expectations during the third quarter, reporting higher-than-anticipated earnings per share of $2.85 and revenue of $3.04 billion.
3. Has Dick’s Sporting Goods revised its guidance for the full year?
Yes, Dick’s Sporting Goods has raised its guidance for the full year, expecting earnings per share to range between $11.45 and $12.05, slightly higher than the previous range.
4. What is the outlook for comparable sales?
Dick’s Sporting Goods anticipates comparable sales to increase between 0.5% and 2%, surpassing analysts’ expectations.
5. How does Dick’s Sporting Goods feel about the upcoming holiday season?
Dick’s Sporting Goods is excited about the upcoming holiday season and remains confident in the product, service, and experience it provides to athletes.