Key Takeaways
- Dick’s Sporting Goods beat first-quarter profit and sales estimates as its stores drew in more shoppers who spent more money.
- Comparable sales were up 5.3%, more than double what analysts had been expecting.
- The sports and recreation equipment retailer boosted its full-year adjusted earnings and comparable store sales guidance.
Shares of Dick’s Sporting Goods (DKS) surged Wednesday after the sports and recreation equipment retailer posted better-than-anticipated results and boosted its guidance as its stores saw an increase in shoppers who spent more.
The company reported first-quarter earnings per share (EPS) of $3.30, with net sales up 6% year-over-year to $3.02 billion. Both exceeded estimates.
Comparable store sales jumped 5.3%, up from 3.6% a year ago. Dick’s said that was driven by growth in transactions and average ticket. Earnings before taxes (EBT) margin came in at 11.3%.
Dick’s ‘Core Strategies and Execution Are Delivering Strong Results’
Chief Executive Officer (CEO) Lauren Hobart explained that the company’s “core strategies and execution are delivering strong results, and we are continuing to gain market share.” She added that because of the solid first-quarter performance and expectations of continuing demand, Dick’s is raising its full-year outlook.
The company now sees 2024 EPS in a range of $13.35 to $13.75, up from the previous outlook of $12.85 to $13.25. It predicts a comparable store sales gain of 2.0% to 3.0%, compared with the earlier view of a 1.0% to 2.0% rise.
Dick’s Sporting Goods shares soared 15% to $224.30 as of 10:06 a.m. ET Wednesday after setting a new high for the year of $228.36 earlier in the session. They are up more than 50% in 2024.