Dick’s Sporting Goods Inc (NYSE: DKS) beat expectations for both revenue and profit in the second quarter on Thursday. The sports equipment retailer also smashed same-store sales estimates and announced an upbeat outlook for the full year.
The impressive results come amid reports that Dick’s could announce a plan to stop selling firearms at all of its stores today. Dick’s is still selling firearms at about 600 of its stores after banning sales at 125 stores earlier this year.
Shares of the Coraopolis, Pennsylvania-based company soared $2.92, or 8.86% to trade at $35.89 apiece. The stock has gained more than 10% so far this year and dropped nearly 11% in the past 12 months.
DKS Earnings & Outlook
The sporting goods retailer had net income of $112.5 million, or $1.26 per share in the second quarter. That compares to net income of $119.4 million, or $1.20 per share in the earlier year period. On average, analysts surveyed by Refinitiv were expecting the company to report earnings of $1.21 per share.
Revenue stood at $2.26 billion compared with $2.18 billion in the same period a year ago. Analysts were expecting revenue of $2.21 billion, according to data compiled by Refinitiv. Comparable-store sales grew 3.2% during the quarter, beating analysts’ expectations of 1% rise.
Looking ahead, the company expects to post earnings of between $3.30 to $3.45 per share for the full year, up from the prior guidance of $3.20 to $3.40 per share. Analysts are guiding for full-year earnings of $3.32 per share, according to Refinitiv.
Dick’s CEO Comments
“Our strong comp sales performance was driven by increases in both average ticket and transactions and represented our strongest quarterly comp since 2016. We saw growth across each of our three primary categories of hardlines, apparel and footwear, our brick-and-mortar stores comped positively and our eCommerce channel remained strong, increasing 21%,” commented Dick’s Sporting CEO Edward W. Stack.
“Our key strategies and investments are working; our major headwinds are behind us and we’ve bent the curve on sales. We are very enthusiastic about our business and are pleased to increase our full year sales and earnings outlook,” Stack added.
Dick’s Sporting Goods Inc Profile
Dick’s Sporting Goods retails athletic apparel, footwear, and equipment for sports. Dick’s operates about 730 stores under its own name and another 130 specialty stores under Golf Galaxy and Field & Stream names. Dick’s also operates e-commerce sites including youth sports site Team Sports HQ.
Dick’s carries private-label merchandise and national brands such as Nike, The North Face, Under Armour, Callaway Golf, and TaylorMade. Based in the Pittsburgh area, Dick’s was founded in 1948 by the father of current chairman, CEO, and controlling shareholder Edward Stack. – Warrior Trading News
