Cars are seen parked in front of Dick’s Sporting Goods store at Monroe Marketplace in Pennsylvania.
Paul Weaver | SOPA photos | Light Rocket | Getty Images
Dick’s Sporting Goods on Tuesday reported quarterly earnings and revenue that beat analyst expectations and boosted its financial outlook for the year.
The sporting goods retailer said it now expects comparable store sales for 2022 to fall between 6% to 2%. It had previously forecast the figure to fall between 8% and 2%, after sales of sports and outdoor equipment surged during the pandemic.
Its shares closed less than 1% higher.
For the full year, Dick now expects adjusted earnings per share to be between $10 and $12. This is higher than its previous forecast of $9.15 and $11.70.
Dicks noted that its net sales for the quarter were up significantly from the same period in 2019. CEO Ed Stack said the results show the company has not only been a beneficiary of higher sales during the pandemic, but rather reflects the structural changes it has made years ago. .
Here’s what the company reported compared to what Wall Street was expecting, based on an analyst survey by Refinitiv:
- Earnings per share: $3.68, adjusted, vs. $3.58 expected
- Revenue: $3.11 billion vs. $3.07 billion expected
For the three months ending July 30, net sales were down 5% from a year ago while comparable store sales were down 5.1%. An 8.4% drop in transactions was partially offset by a 3.3% increase in average tickets. The company said footwear, team sports and golf were among the top performing categories, while sportswear was challenged by delayed shipments.
In an interview with CNBC, Stack noted the demand for Dick’s products in the “highs and lows of the economy” and cited the example of someone’s 10-year-old daughter who needs bigger soccer shoes.
“You don’t walk to her, put your arm around her,” hey, honey, do you know what? Put on your old cleats, tie your toe and go play soccer. “You go to buy a new pair, a new pair of cleats,” he said.
The company said its stock level was good and in good shape for the back-to-school season.
“We had some trailers backed up and our system crashed,” Stack told CNBC. “We’ve worked through the vast majority of that and it will be completely cleaned up by the end of this month, possibly in the second week of September.”
CNBC’s Courtney Reagan contributed to this report.