Cars are parked in front of Dick’s sporting goods store in Monroe Market in Pennsylvania.
Paul Weaver | SOPA images | Light rocket | Getty Images
Dick’s Sporting Goods on Tuesday reported quarterly earnings and revenue that beat analysts’ expectations and improved its financial outlook for the year.
The sporting goods retailer said it now expects comparable store sales to decline by 6-2% in 2022. The company had previously forecast that this figure would fall by 8-2% after sales of sports and outdoor equipment rose during the pandemic.
Its shares rose more than 1% in morning trading.
For the full year, Dick’s expects adjusted earnings per share to be between $10 and $12. This is above the previous forecast of $9.15 and $11.70.
Dick’s noted that its net sales for the quarter were up significantly compared to the same period in 2019. Executive Chairman Ed Stack said the results show the company has not only benefited from sales growth during the pandemic, but also reflects the structural changes it made a few years ago. .
Here’s what the company said compared to what Wall Street expected, based on a survey of analysts at Refinitiv:
- Earnings per share: $3.68 (adjusted) vs. $3.58 expected.
- Revenue: $3.11 billion vs. $3.07 billion expected
In the three months ended July 30, net sales fell 5% year-over-year, while like-for-like in-store sales were down 5.1%. The decrease in the number of transactions by 8.4% was partially offset by an increase in the average check by 3.3%. Footwear, team sports and golf were some of the top-performing categories, while sportswear faced supply delays, the company said.
In an interview with CNBC, Stack noted the demand for Dick’s products during the “ups and downs of the economy” and gave the example of someone’s 10-year-old daughter who needs larger shoes for football.
“You don’t walk up to her and hug her and say, ‘Hey honey, you know what? Put on your old boots, bend your toe and go play football.” Go and buy a new, new pair of boots,” he said.
The company said its stock levels were good and well prepared for the start of the school season.
“We had backups of some of the trailers and our system got clogged,” Stack told CNBC. “We’ve worked through most of this and everything will be fixed by the end of this month, maybe by the second week of September.”
− Courtney Reagan of CNBC contributed to this report.