Dick’s Sporting Goods ups outlook

Dick's Sporting Goods reported better-than-expected second-quarter earnings and revenue and raised its full-year guidance.

The sporting goods powerhouse is boosting its forecast even as some retailers, including Macy’s and Kohl’s, have done just the opposite.  In a statement, executive chairman Ed Stack said Dick’s performance reflected the strength of its core categories and the structural changes it made across its business five years ago.

“The state of our industry is strong, and we remain in a great lane,” Stack said. “Dicks’s is the clear market leader, and as a result of our transformation, we are well-positioned to extend our lead and deliver long-term sales and earnings growth." 

The company reported that its net earnings totaled $318.4 million, or $3.25 a share, for the quarter ended July 30, down from $495.5 million, or 4.53 a share, in the year-ago period. Adjusted earnings came to $3.68 per share, ahead of the $3.59 expected by analysts.

Sales edged down to $3.11 billion from $3.27  billion a year ago, but topped the $3.06 billion analysts expected.  Sales increased 38% compared to the second quarter of 2019.

Same-store sales fell 5.1%.

"We are very pleased with our second quarter results, and with our sales up 38% versus Q2 2019, the Dick’s Sporting Goods consumer has held up quite well," stated president and CEO Lauren Hobart. "Our inventory is healthy and well-positioned, and we are excited about our assortment for the back-to-school season. We are raising our full year 2022 outlook, which continues to incorporate an appropriate level of caution given today's uncertain macroeconomic environment."

For the full year, Dick’s now expects adjusted earnings per share to be between $10 and $12,  up from its previous forecast of $9.15 to $11.70.

The retailer expects full-year same-store sales to fall 6% to 2%, compared with prior guidance of an 8% to 2% decrease.

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