Earnings

Dick’s Sporting Goods earnings crush estimates as kids head back to team sports, retailer raises forecast

In this article

Mannequins stand next to merchandise displayed for sale at a Dick’s Sporting Goods store in West Nyack, New York.
Craig Warga | Bloomberg | Getty Images

Dick’s Sporting Goods reported Wednesday fiscal first-quarter earnings and sales that topped analyst estimates, saying kids returning to team sports boosted sales.

Dick’s also raised its full-year financial outlook, citing building momentum.

Shares jumped more than 6% on the news in premarket trading.

Here’s how Dick’s did for the period ended May 1, compared with what analysts were anticipating, using Refinitiv estimates:

  • Earnings per share: $3.79 adjusted vs. $1.12 expected
  • Revenue: $2.92 billion vs. $2.18 billion expected

Dick’s net income grew to $361.8 million, or $3.41 per share, from a loss of $143.4 million, or $1.71 per share, a year earlier. Excluding one-time adjustments, it earned $3.79 per share, well ahead of the $1.12 that analysts had expected, according to a Refinitiv survey.

Revenue grew 119% to $2.92 billion from $1.33 billion a year earlier, when Dick’s was forced to shut its stores for a period of time due to the pandemic. That beat estimates for $2.18 billion. On a two-year basis, sales were up 52%.

CEO Lauren Hobart said it saw a resurgence in its team sports business during the quarter, as kids returned to activities following a year when many youth sports were canceled. The company also saw heightened demand in the golf category.

Same-store sales surged 115% year over year, the company said, which included e-commerce growth of 14%.

Dick’s now expects adjusted earnings in fiscal 2021 to be in a range of $8.00 to $8.70 per share, with sales of $10.5 billion to $10.8 billion. Analysts had been looking for the company to earn $5.32 per share, after adjustments, on sales of $9.8 billion.

As of market close Tuesday, Dick’s shares are up about 50% year to date. The company has a market cap of $7.5 billion.

Find the full earnings press release from Dick’s here.

Products You May Like

Articles You May Like

Frontier Airlines does away with change fees in budget airline pricing overhaul
Refinancing student debt is risky amid Biden forgiveness push. Borrowers ‘forever lose access’ to safety nets, advocates say
A 20% home down payment isn’t ‘the law of the land,’ analyst says. Here’s how much people are paying
Tesla’s Chinese rival Nio launches a new brand and car that undercuts the Model Y by $4,000
How IRMAA Can Increase Your Medicare Premiums In Retirement

Leave a Reply

Your email address will not be published. Required fields are marked *