Cars are seen parked in front of Dick’s sporting goods store at Monroe Market in Pennsylvania.
Paul Weaver | SOPA Images | LightRocket | Getty Images
Dick’s Sporting Goods stock tumbled on Tuesday despite the company reporting fiscal third-quarter profit that beat analysts’ expectations, pushing its full-year forecast higher.
The fall was due to the fact that Dick’s shares were up almost 150% since the beginning of the year at the close of the market on Monday. By Tuesday afternoon, the stock was down more than 10%.
Dick CEO Lauren Hobart said consumer demand remains strong after the summer season and the rush to return to school, and that the company’s wide range of products – from golf clubs to running gear – allows it to meet the needs of many customers.
According to a survey by Refinitiv, here’s what the sporting goods giant’s financial third-quarter results looked like:
- Earnings per share: Adjusted $ 3.19 versus $ 1.97 expected.
- Revenue: $ 2.75 billion vs. $ 2.50 billion expected.
For the three-month period ending 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 items, it earned $ 3.19 a share, beating analysts’ expectations of $ 1.97.
Revenue rose about 14% to $ 2.75 billion from $ 2.41 billion a year earlier. This exceeded expectations of $ 2.50 billion.
Single-store sales that track revenue in stores that have been open for at least 12 months were up 12.2%. Analysts polled by StreetAccount had forecast growth of 1.9%.
Dick’s said its online sales were up just 1% from a year earlier, when many consumers were shopping online, and are up 97% in two years. Ecommerce sales accounted for about 19% of total sales, up from 13% in 2019.
As its sales accelerated and new customers began shopping on its website and in stores during the pandemic, Dick’s invested in its business to keep shoppers returning for new items. In March, she launched VRST, a men’s sportswear brand. In April, he opened his largest store, House of Sport, in the suburbs of Rochester, New York. The store has an indoor climbing wall, a golf lawn, a health and wellness store, and an outdoor track and field.
And in August, she announced a partnership with her largest brand supplier, Nike. Nike’s membership program is now linked to Dick’s loyalty program to allow customers to shop for exclusive Nike footwear and apparel from Dick’s website.
GlobalData Retail Managing Director Neil Saunders said the company should be applauded for its innovative efforts that continued during the healthcare crisis.
“These results are exceptional and set Dick apart as one of the clear winners of the pandemic churn,” Saunders said in a research note.
Dick’s now expects to earn between $ 12.88 and $ 13.06 per share on sales of $ 12.12 billion to $ 12.19 billion. After adjusting for Covid-19-related expenses, Dick’s said it would earn between $ 14.60 and $ 14.80 per share.
The company previously estimated adjusted earnings for the year in the range of $ 12.45 to $ 12.95 per share on sales of $ 11.52 billion to $ 11.72 billion.
Analysts had expected FY2021 adjusted earnings per share to be $ 13.13 on sales of $ 11.84 billion.
Dick’s market value is about $ 11.2 billion, including Tuesday’s losses.
Find the Complete Dick’s Sporting Goods Income Press Release here…