Dick’s Sporting Goods crushes earnings and raises full-year outlook

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  • Dick’s Sporting Goods reported fiscal third-quarter earnings and sales on Tuesday that surpassed analysts’ expectations.
  • The upbeat results prompted the sporting goods chain to raise its annual forecast again.
  • Chief executive Lauren Hobart said consumer demand remains strong after the summer season and back-to-school rush.

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Dick’s Sporting Goods reported fiscal third-quarter earnings and sales on Tuesday that surpassed analysts’ expectations, prompting the sporting goods giant to again raise its annual forecast.

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Shares were up less than 1% in extended trading on the news.

Chief executive Lauren Hobart said consumer demand remained strong after the summer season and back-to-school crowds, and the company’s broad assortment of products made it the perfect opportunity to meet the needs of many shoppers, from golf clubs to running gear. Gave permission.

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Here’s how Dick’s fared in its fiscal third quarter compared to what analysts were expecting, according to a survey compiled by Refinitiv:

  • Earnings Per Share: $3.19 Adjusted Vs. $1.97 Expected
  • Revenue: $2.75 billion versus $2.50 billion expected

In the three-month period ended October 30, net income rose to $316.5 million, or $2.78 per share, from $177.2 million, or $1.84 per share, a year earlier.

Excluding commodities, it earned $3.19 per share, ahead of the $1.97 that analysts were expecting.

Revenue rose nearly 14% to $2.75 billion from $2.41 billion a year ago. It topped expectations of $2.50 billion.

Same-store sales, which tracks revenue at stores that have been open for at least 12 months, grew 12.2%. Analysts polled by StreetAccount were calling for a 1.9% gain.

Dix said its online sales grew just 1% compared to a year ago, when many consumers turned to online shopping, and were up 97% on a two-year basis. E-commerce sales accounted for about 21% of its total business, up from 19% in 2019.

As its sales boom and new customers shop its website and store during the pandemic, Dick’s has invested in its business to keep shoppers coming back for more. It launched VRST, a men’s athletic brand, in March. It opened its largest store, called House of Sport, in a suburb of Rochester, New York, in April. The store includes an indoor rock climbing wall, green, health and wellness shop, and a track and turf field outside.

And in August, it announced a tie-up with its biggest brand seller, Nike. Nike’s membership program is now integrated with Dick’s loyalty program so that customers can purchase exclusive Nike shoes and apparel on Dick’s website.

Dick’s now expects earnings between $12.88 and $13.06 per share on sales of $12.12 billion to $12.19 billion. After adjusting for expenses related to COVID-19, Dick said it would earn $14.60 and $14.80 per share.

Previously, it estimated full-year adjusted earnings to be between $12.45 and $12.95 per share, on sales of $11.52 billion to $11.72 billion.

Analysts were looking for fiscal 2021 adjusted earnings of $13.13 per share on sales of $11.84 billion.

Dick’s shares have declined this year, rising nearly 150% so far. Its market value is about $12.5 billion.

Get the full earnings press release from Dix ​​Sporting Goods Here,

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