Dick’s Sporting Goods (DKS) reports Q3 2019 earnings beat, ups outlook

Earnings


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

Craig Warga | Bloomberg | Getty Images

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

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

Shares jumped more than 19% on the news.

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

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

  • Earnings per share: 52 cents, adjusted, vs. 38 cents expected
  • Revenue: $1.96 billion vs. $1.91 billion expected
  • Same-store sales: up 6% vs. growth 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 share, a year earlier. Excluding one-time items, the company earned 52 cents per share, better than the expected 38 cents.

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

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

Dick’s Sporting Goods now expects to earn $3.50 to $3.60 per share this year, on an adjusted 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% drop in 2018.

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

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

Read the full earnings press release here.



Source link

Products You May Like

Articles You May Like

Warren wealth tax would raise much less than she estimates
What consumers most want in 2020: a debt-free life
Lululemon (LULU) reports fiscal Q3 2019 earnings beat
Financial advisors hire young talent for their business to thrive
Home Depot forecasts 2020 sales growth below expectations

Leave a Reply

Your email address will not be published. Required fields are marked *