Dick’s Sporting Goods Q3 surges; best same-store sales in six years
Dick’s Sporting Goods raised its full-year profit outlook on the heels of a strong quarter with better-than-expected earnings and sales.
Net income for the quarter rose to $57.6 million, or 66 cents per share, for the quarter ended Nov. 2, up from $37.8 million, or 39 cents a share, a year ago. Adjusted earnings were 52 cents, better than the 38 cents analysts were expecting.
Net sales increased 5.6% to $1.96 billion from $1.86 billion, topping the $1.91 billion that analysts had expected. Online sales grew 13%, accounting for approximately 13% of total net sales, compared to approximately 12% in the year-ago period.
Dick’s said it saw increases in both the average ticket and in transactions, along with growth across its three primary categories of hardlines, apparel and footwear.
“One of the beneficial steps Dick’s has taken over the past half year is to reallocate floor space away from underperforming categories to products that are more in demand,” commented Neil Saunders, managing director, GlobalData Retail. “This has been done on a local basis, which has meant that more Dick’s stores are now aligned with customer needs within the markets they serve.”
Comparable sales (online and store) rose 6%, more than double expected growth of 2.9%. It was the chain’s strongest quarterly growth in six years.
"As we head into the holiday season, we remain very enthusiastic about our business, and we are pleased to increase our full-year sales and earnings outlook for the third time this year,” said Edward W. Stack, chairman and CEO.
Dick’s said it now expects annual earnings of between $3.50 and $3.60 per share this year, on an adjusted basis, compared with its prior range of $3.30 to $3.45 a share. The chain expects overall annual same-store sales to increase 2.5% to 3% for the year, compared with a 3.1% drop in 2018.