Dick’s Sporting Goods maintained momentum in its third quarter, reporting better-than-expected third-quarter profit and revenue and an unexpected increase in comparable store sales.
Net income totaled $228 million, or $2.45 a share, for the quarter ended Oct. 29, down from $317 million, or $2.78 a share, in the year-ago period. Adjusted earnings per share came to $2.60, topping analysts’ estimates of $2.27.
Net sales rose 7.7% to $2.959 billion, ahead of the $2.702 billion analysts expected. Same-store sales rose 6.5%, on top of a 12.8% increase in the year-earlier period, a 23.2% increase in the 2020 third quarter a 6.0% increase in the 2019 third quarter.
“We delivered an exceptionally strong third quarter with our comps increasing 6.5% and EBT margin of 10.3%, which was over three times our 2019 non-GAAP rate,” said CEO Lauren Hobart. “Dick’s is a growth company, and our Q3 sales results are powerful evidence of our sustainable growth story. Because of our continued strong performance, quality of inventory and the confidence we have in our business, we are raising our full year 2022 outlook."
Dick's is now expecting full-year adjusted earnings per share of $11.50 to $12.10 and same-store sales to fall 1.5% to 3%.
Earlier this month, Dick’s made a strategic investment in SidelineSwap, a platform for buying and selling new and used sporting goods. The unspecified investment builds upon a partnership the two companies initially launched in August 2022. At the trade-in events, customers can exchange their used sports gear and receive Dick’s gift cards to use toward their next purchase. Customers also have the option to donate all or a portion of their trade-in value to select local sports organizations. Items that do not qualify for trade-in can be donated or recycled.
Dick’s has also piloted an in-store buyback program with Out&Back, an online platform that buys and sells new and used outdoor and adventure gear.
Headquartered in Pittsburgh, Dick’s Sporting Goods has more than 850 namesake, Golf Galaxy, Field & Stream, Public Lands, Going Going Gone! and Warehouse Sale stores.
The company also owns and operates Dick’s House of Sport and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile app for scheduling, communications, live scorekeeping and video streaming.