A Dick’s Sporting Goods logo is displayed on the floor of a store on September 4, 2024 in Daly City, California.
Justin Sullivan | Getty Images
dick’s sporting goods The company on Tuesday raised its full-year guidance after Chief Executive Lauren Hobart called the back-to-school shopping season “outstanding” and third-quarter comparable sales better than expected.
The sporting goods giant now expects same-store sales to grow 3.6% to 4.2% in fiscal 2024, up from the previous range of 2.5% to 3.5%. The figure was higher than the 3.4% expected by Wall Street analysts, according to StreetAccount.
Dick’s beat revenue and profit estimates, and its upbeat guidance suggested the company is planning for a strong holiday shopping season after issuing cautious guidance earlier this year ahead of the 2024 election.
The company’s shares rose more than 8% in premarket trading Tuesday.
Here’s how the retailer performed in its fiscal third quarter compared with Wall Street expectations, according to a survey of analysts by LSEG:
- Earnings per share: Adjusted $2.75 Expected to be $2.68
- income: US$3.06 billion Expected to be $3.03 billion
Dick’s reported net income of $228 million, or $2.75 a share, for the three months ended Nov. 2, compared with $201 million, or $2.39 a share, a year earlier.
Sales rose to $3.06 billion, slightly higher than the $3.04 billion in the same period last year.
“We are extremely proud of our third quarter results and year-to-date performance,” Hobart said in the release. “Our third quarter sales were driven by a continued focus on our strategic pillars and the exceptional execution of our team.” Growth of 4.2%. “As a result of our strong performance in the quarter and continued confidence in our business, we are again raising our full-year outlook. We believe our differentiated products, superior service and strong omni-channel experience will complement our Athletes resonate well this holiday season.
For the quarter, strong back-to-school shopping led to comparable sales growth of 4.2%, well above StreetAccount’s forecast of 2.7%. Some of Dick’s’ fellow retailers said last week that unseasonably warm weather and storms in the Southeast were hurting sales this season, but the sporting goods company does not appear to be facing the same problems.
Dick said the strong quarterly results also led it to raise its full-year sales and profit forecasts.
The company now expects fiscal 2024 sales to be in the range of $13.2 billion to $13.3 billion, in line with LSEG’s forecast of $13.26 billion and up from the previous range of $13.1 billion to $13.2 billion.
Full-year earnings per share are now expected to be $13.65 to $13.95, up from the previous forecast of $13.55 to $13.90. It’s unclear whether that guidance is comparable to estimates.
