Home Business Dick’s Sporting Goods (DKS) earnings in the third quarter of 2023

Dick’s Sporting Goods (DKS) earnings in the third quarter of 2023

by SuperiorInvest

A Dick’s Sporting Goods store is located on Staten Island on March 9, 2022 in New York City.

Spencer Platt | fake images

Reduce who?

Sales and profits in Dick’s Sporting Goods rebounded in the fiscal third quarter, prompting the retailer to raise its full-year guidance on Tuesday after it surprised investors earlier this year when it cut its outlook over theft concerns.

Dick’s beat Wall Street estimates for top and bottom lines for the period. In a press release, the company said it is “excited” for the holiday season after seeing “strong” back-to-school sales.

Dick’s shares rose more than 8% in premarket trading following the news.

Here’s how the sporting goods retailer performed during its fiscal third quarter compared to what Wall Street anticipated, according to a survey of analysts by LSEG, formerly known as Refinitiv:

  • Earnings per share: $2.85, adjusted, vs. $2.44 expected
  • Revenue: $3.04 billion vs. $2.94 billion expected

The company’s reported net income for the three-month period ended Oct. 28 was $201 million, or $2.39 per share, compared with $228 million, or $2.45 per share, a year before. Excluding one-time items, Dick’s had earnings per share of $2.85.

Sales rose to $3.04 billion, up about 2.8% from $2.96 billion a year earlier.

For the full year, the company now projects earnings per share of between $11.45 and $12.05, compared with the range of $11.27 to $12.39 that analysts were expecting, according to LSEG. Dick’s raised its guidance from a previous range of $11.33 to $12.13. But it’s still below the original outlook the company set earlier this year, when it said it expected earnings of between $12.90 and $13.80.

Dick’s also slightly raised its comparable sales outlook and expects them to rise between 0.5% and 2%, compared with a previous range of 2% to 2%. Much of that range would exceed the 0.7% increase analysts were expecting, according to StreetAccount.

Dick’s did not immediately share more details about its Christmas forecast. But with it only slightly raising its same-store sales outlook despite strong third-quarter results, Dick’s appears somewhat cautious entering the holiday season, mirroring sentiment among other retailers who are concerned that demand will be tepid. .

When Dick’s reported fiscal second-quarter earnings over the summer, its stock plummeted 24% after blaming theft and aggressive markdowns for a staggering 23% drop in profits. Increases in “organized retail crime and general theft,” plus aggressive markdowns to eliminate excess inventory, contributed to the profit loss. The company said it would affect its guidance for the year.

While Dick’s earnings guidance is still below the range it had originally set, strong sales during the back-to-school months led the company to improve its outlook and strike a positive tone for the crucial holiday shopping season. .

“We are pleased with our third quarter results. With our best-in-class athlete experience and differentiated assortment, we had a very strong back-to-school season and continue to gain market share as consumers prioritize sporting goods. of DICK’S to meet your needs,” President and CEO Lauren Hobart said in a news release. “As a result of our strong performance in the third quarter, we are raising our full-year outlook, balancing the confidence we have in our key strategies with recognition of the uncertain macroeconomic environment. We are excited about the upcoming holiday season and the product .service and experience that we are providing to our athletes.ā€

Read the full earnings release here.

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