Cars are parked outside a Dick’s Sporting Goods store in Monroe Marketplace, Pennsylvania.
Paul Tisserand | SOPA Pictures | light flare | Getty Images
Dick’s Sporting Goods on Tuesday reported quarterly earnings and revenue that beat analysts’ expectations and improved its financial outlook for the year.
The sporting goods retailer said it now expects same-store sales for 2022 to decline between 6% and 2%. He had previously forecast the figure to be down between 8% and 2%, after sales of sports and outdoor equipment surged during the pandemic.
Its shares closed down less than 1%.
For the full year, Dick’s now expects adjusted earnings per share to be between $10 and $12. This is up from its previous forecasts of $9.15 and $11.70.
Dick’s noted that its net sales for the quarter increased significantly compared to the same period in 2019. Executive Chairman Ed Stack said the results show the company has not only benefited from higher sales during the pandemic. , but reflects the structural changes it made years ago.
Here’s what the company reported compared to what Wall Street expected, based on a Refinitiv analyst survey:
- Earnings per share: $3.68, adjusted, vs. $3.58 expected
- Revenue: $3.11 billion vs. $3.07 billion expected
For the three months ended July 30, net sales fell 5% from a year ago, while comparable store sales fell 5.1%. An 8.4% drop in transactions was partially offset by a 3.3% increase in the average ticket. Footwear, team sports and golf were among the best performing categories, while sportswear was challenged by delayed shipments, the company said.
In an interview with CNBC, Stack noted the demand for Dick’s products in the “ups and downs of the economy” and cited the example of someone’s 10-year-old daughter who needed bigger ones. sneakers for football.
“You don’t walk up to her, put your arm around her and say, ‘Hey, honey, you know what? Put on your old cleats, curl your toe and go play some football.’ You’re going to buy a new, new pair of cleats,” he said.
The company said its inventory level was healthy and well positioned for the back-to-school season.
“We had trailers that got backed up and our system got clogged up,” Stack told CNBC. “We’ve worked on the vast majority of this and it will all be cleaned up by the end of this month, maybe the second week of September.”
– CNBC’s Courtney Reagan contributed to this report.