Dick’s Sporting Goods store on Staten Island in New York City on March 9, 2022.
Spencer Pratt | Getty Images
Who do you want to shrink?
Sales and profit dicks sporting goods After shocking investors earlier this year by lowering its outlook due to theft concerns, the company rebounded in the third quarter and raised its full-year forecast on Tuesday.
Dick’s exceeded Wall Street expectations for sales and bottom line results for the same period. The company said in a news release that it is “excited” for the holiday season after “strong” back-to-school sales.
Shares rose more than 8% in premarket trading on the news.
Here’s how the sporting goods retailer’s fiscal third-quarter results compare to Wall Street expectations, based on a survey of analysts by LSEG (formerly Refinitiv).
- Earnings per share: Adjusted $2.85, projected $2.44
- Revenue: $3.04 billion vs. $2.94 billion expected
The company reported net income of $201 million, or $2.39 per share, for the three months ended Oct. 28, compared with $228 million, or $2.45 per share, in the same period last year. Excluding one-time items, Dix’s earnings per share were his $2.85.
Sales were $3.04 billion, an increase of approximately 2.8% from $2.96 billion in the same period last year.
LSEG said it expects full-year earnings per share to be in the range of $11.45 to $12.05, compared to analysts’ expectations of $11.27 to $12.39. Dick’s raised its guidance to $12.13 from $11.33. However, it is still below the company’s initial earnings estimate of $12.90 to $13.80, which it set earlier this year.
Dick’s also slightly raised its comparable sales outlook, now expecting them to increase between 0.5% and 2%, compared with the previous range of flat to 2% growth. Many of those ranges would beat analysts’ expectations for a 0.7% increase, according to street accounts.
Dick’s did not immediately provide details about its outlook for the holiday season. However, despite the strong third quarter, Dick’s only revised its same-store sales outlook slightly upward, reflecting sentiment among other retailers who fear demand will slow. It seems like people are being a little more cautious heading into the holiday season.
When Dick’s released its second-quarter results over the summer, it blamed theft and aggressive price gouging for a staggering 23% drop in profits, and its stock price plummeted 24%. An increase in “organized retail crime and theft in general” as well as aggressive price cuts to clear excess inventory contributed to the loss of profits. The company said this will impact its earnings forecast for this year.
Dick’s’ profit outlook is still below its original range, but strong sales during the back-to-school period prompted the company to raise its outlook and strike a positive note heading into the crucial holiday shopping season.
“We are pleased with our third quarter results. With our best-in-class athlete experience and differentiated assortment, we have had a very strong back-to-school season and are confident that DICK’S Sports will help consumers meet their needs.” We continued to gain market share as we prioritized supplies,” President and CEO Lauren Hobart said in a news release. “Following our strong third quarter performance, we are raising our full-year outlook. This balances confidence in our core strategy with recognition of the uncertain macroeconomic environment. is excited about the upcoming holiday season and the products, services and experiences we are providing our athletes.”
Please read the full financial results release here.