Dicks Sporting Goods Inc | $DKS Stock | Shares Surge 24% After Guidance Lift & Q1 Earnings Beat

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Dicks Sporting Goods Inc (NYSE: DKS) 

 

Shares of Dicks Sporting Goods Inc. jumped 24% during the premarket trading session on Wednesday. Investors sent the stock up after the company reported better-than-expected quarterly earnings for the period ended May 5, 2018.

Revenue jumped to $1.91 billion from last year’s $1.83 billion, surpassing the $1.88 billion figure that analysts expected.

CEO Edward Stack attributed the company’s strong performance during the quarter to new products, leaner product assortment, and strength in private brands. The company also raised its outlook for the full year.

DKS Earnings & Outlook

Dicks Sporting Goods Stock Chart

The Coraopolis, Pennsylvania-based company reported net income of $60.1 million, or 59 cents per share. In the year-ago period, it had net income of $58.2 million, or 52 cents per share.

Adjusted earnings per share were 54 cents on revenue of $1.91 billion, up the year-ago figure of $1.83 billion. The results easily edged above the estimate of analysts who had projected adjusted earnings per share of 45 cents on a revenue of $1.88 billion.

Online sales grew 24% during the first quarter of 2018, and accounted for about 11% of total sales.

The company raised its guidance for the full year and now expects to report adjusted earnings per share of between $2.92 and $3.12 as opposed to the its previous outlook of between $2.80 and $3.00. Wall Street forecasts adjusted earnings per share of $2.92.

Dicks Sporting Goods CEO Comments

Our strong first quarter earnings reflect improved execution against our merchandising strategy, which resulted in higher merchandise margins. Product newness, strength in our private brands and a more refined assortment led to a much healthier business, with fewer promotions and cleaner inventory throughout the quarter. We believe these benefits will continue as we further optimize our assortments. We are also continuing to see the results of investments in our digital experience, and we will continue to invest as we build the best omni-channel experience for all athletes,” said Edward W. Stack, Chief Executive Officer of Dick Sporting Goods.

Dicks Sporting Goods Inc. Company Profile

Dick’s Sporting Goods, Inc. is an omni-channel sporting goods retailer that mainly operates in the eastern U.S.

The company offers a variety of sporting goods, such as golf equipment, fitness equipment, and fishing and hunting gear products; as well as accessories and footwear.

In addition, it owns and manages specialty concept outlets, such as Field & Stream, Golf Galaxy, Field & Stream; and e-commerce websites.

The company also operates the Dick’s Team Sports HQ, which is a digital platform aimed at offering mobile apps for scheduling, live score-keeping and communications, free league management services, fan wear and custom uniforms, and access to sponsorships and donations.

It operated a total of 727 outlets across 47 states as of April 10, 2018. The company was founded in 1949 and its head offices are located in Coraopolis, Pennsylvania. It was previously known as Dick’s Clothing and Sporting Goods, Inc. before taking its current name in 1999. – Reuters

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