Dick’s posts strong Q3; lifts outlook
Dick’s Sporting Goods reported better-than-expected third-quarter earnings and sales and raised its full-year profit outlook.
It was a return to form for the nation’s largest sporting goods retailer, whose second-quarter profit dropped 23% amid theft and markdowns. Dick’s subsequently cut its full-year profit outlook.
In reporting its third-quarter results, Dick’s cited a “very strong” back-to-school season and struck an upbeat note about the holiday season.
For the quarter ended Oct. 28, Dick’s net income totaled $201 million, or $2.39 per share, compared with $228 million, or $2.45 per share, in the year-ago period. Adjusted earnings came to $2.85 per share, ahead of analysts estimates of $2.45 a share.
Sales rose roughly 2.8% to $3.04 billion, up from $2.96 billion a year earlier. Analysts had expected sales of $2.94 billion. Comparable store sales edged up 1.7%, driven by increases in both transactions and average ticket.
“We are pleased with our third quarter results,” said president and CEO Lauren Hobart. “With our best-in-class athlete experience and differentiated assortment, we had a very strong back-to-school season and continued to gain market share as consumers prioritize Dick’s Sporting Goods to meet their needs.”
“As a result of our strong Q3 performance, we are raising its full year outlook, which balances the confidence we have in our key strategies with an acknowledgment of the uncertain macroeconomic environment,” Hobart added. “We're excited for the upcoming holiday season and the product, service and experience we are providing to our athletes.”
For the full year, Dick’s now projects earnings to range between $11.45 and $12.05 per share, compared to its prior guidance of $11.33 to $12.13 per share.
The retailer also raised its comparable sales outlook to 0.5% to 2%, up from its previous range of flat to up 2%.
Dick’s ended the quarter with a total of 869 stores, including 725 namesake locations (includes 12 Dick’s House of Sport stores) and 144 specialty Golf Galaxy, Public Lands, Going Going Gone! and other specialty concept stores.