Dick’s Sporting Goods off to ‘strong start’ in Q1; reaffirms outlook
Dick’s Sporting Goods reported another quarter of better-than-expected sales and earnings as it experienced growth across all income groups.
The nation’s largest sporting goods retailer stood apart from many other retailers, including competitor Foot Locker, that have suffered slowdowns amid cutbacks in discretionary spending. On the company's earnings call, CEO Lauren Hobart said that, compared to the same period last year, "more athletes purchased from us, they purchased more frequently and they spend more each trip.”
In March, Dick’s said it plans to open about 20 locations of its experiential store concept, "Dick's House of Sport," during the next two years, including nine stores this year. Looking ahead, the company expects to have a total of 75 to 100 House of Sport locations by the end of 2027. Hobart said the format is fostering strong engagement with athletes (customers).
Dick's reported that its net income totaled $305 million, with earnings per share of $3.40, for the quarter ended April 29, up from $261 million, or earnings per share of $2.47, in the year-ago period. Analysts had expected first-quarter earnings of $3.18 per share.
Sales rose 5.3% to $2.842 billion from $2.700 billion, topping estimates of $2.799 billion. Same-store sales rose 3.4%, driven by a 2.7% increase in transactions as well as higher average ticket.
During the quarter, Dick’s entered into a deal to acquire digitally native, specialty outdoor retailer Moosejaw from Walmart. Moosejaw also operates about 12 brick-and-mortar locations in Arkansas, Colorado, Illinois, Kansas, Michigan and Missouri.
“Even as consumers face macroeconomic uncertainties, our athletes have continued to prioritize sport and rely on Dick’s to meet their needs, and we continue to gain market share,” stated Hobart in the earnings release. “We remain confident in our ability to drive sales and profitable growth in 2023 and over the long term.”
In March, Dick’s said it plans to open 20 locations for its experiential store concept, "Dick's House of Sport," during the next two years, including nine stores this year. Looking ahead, the company sees a total of 75 to 100 House of Sport locations during the next five years.
The company reaffirmed its full year earnings per share outlook of $12.90 to $13.80 and same-store sales to be flat to up 2%.
“Our strong start to 2023 demonstrates the sustained strength of our business,” stated Ed Stack, executive chairman.
Dick’s ended the quarter with 858 namesake, Golf Galaxy, Public Lands, Moosejaw, Going Going Gone! and Warehouse Sale stores, Dick’s House of Sport and Golf Galaxy Performance Center stores. It also operates online, including GameChanger, a youth sports mobile platform for live streaming, scheduling, communications and scorekeeping.