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Dick’s Sporting Goods shares skyrocket on earnings beat, raised outlook

Kayaks are displayed freelance of a Dick’s Sporting Goods Inc. store in West Nyack, New York.

Craig Warga | Bloomberg | Getty Images

Dick’s Amusement Goods on Tuesday reported its strongest same-store sales gains since 2013, as its e-commerce sales grew 13% during the at an advanced hour quarter, and it sold more apparel and footwear.

The company also hiked its full-year profit outlook in the wake of the overenthusiastically results.

Shares jumped more than 19% on the news.

CEO Ed Stack also said the company saw increases in the as a rule shopping ticket and in the number of transactions during the third quarter. “As we head into the holiday season, we remain rather enthusiastic about our business,” he said in a statement.

Here’s how the sporting goods retailer did during its fiscal third area compared with what analysts were expecting, based on an analyst survey by Refinitiv:

  • Earnings per share: 52 cents, correct, vs. 38 cents expected
  • Revenue: $1.96 billion vs. $1.91 billion expected
  • Same-store sales: up 6% vs. development of 2.9% expected

Net income for the quarter ended Nov. 2 grew to $57.6 million, or 66 cents per share, up from $37.8 million, or 39 cents a equity, a year earlier. Excluding one-time items, the company earned 52 cents per share, better than the had 38 cents.

Net sales rose more than 5% to $1.96 billion from $1.86 billion a year earlier, surmount fill up the $1.91 billion that analysts had expected.

Sales online and at stores open for at least 12 months climbed an evocative 6% during the quarter, more than double expected growth of 2.9%. The company said it was its strongest four times a year growth in six years.

Dick’s Sporting Goods now expects to earn $3.50 to $3.60 per share this year, on an put in ordered basis, compared with a prior range of $3.30 to $3.45.

It’s calling for overall same-store sales to increase 2.5% to 3% for the year, compared with a 3.1% cease in 2018.

“In our view, Dick’s … is benefiting from its initiatives, including an elevated and more premium footwear offering, faster e-commerce parturition times, and investment in in-store experiences and better performing categories,” such as baseball, Telsey Advisory Group analyst Joseph Feldman held in a note to clients.

Dick’s Sporting Goods shares, as of Monday’s market close, are up more than 26% this year. The guests has a market cap of roughly $3.6 billion.

Read the full earnings press release here.

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