Cars were seen parked in front of the Dick’s Sporting Goods store at Monroe Marketplace in Pennsylvania.
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Dick’s sportswear on Tuesday reported quarterly earnings and revenue that beat analysts’ expectations and boosted the financial outlook for the year.
The sportswear retailer said it now expects comparable store sales for 2022 to fall between 6% and 2%. They had previously forecast this number to fall between 8% and 2%, after sales of sports and outdoor equipment spiked during the pandemic.
Its shares closed up less than 1%.
For the full year, Dick’s now projects adjusted earnings per share of $10 to $12. This is up from previous forecasts of $9.15 and $11.70.
Dick’s noted that the company’s net revenue for the quarter increased significantly year-on-year in 2019. Executive Chairman Ed Stack said the results showed the company was more than just a beneficiary of higher sales. during the pandemic but also reflects the structural changes the company made years ago.
Here’s what the company reported versus what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $3.68, adjusted, versus $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%. The 8.4% drop in transactions was partially offset by a 3.3% increase in average ticket sales. The company said footwear, team sports and golf were among the best performing categories, while sportswear struggled due to delayed shipments.
In an interview with CNBC, Stack noted demand for Dick’s products at “the highs and lows of the economy” and cited the example of someone’s 10-year-old daughter needing one. larger sneakers for soccer.
“You don’t walk up to her, put your arms around her, ‘Hey, baby, you know what? Put on your old shoes, curl your toes and go play football. “You go buy a new pair of shoes, a new pair of shoes,” he said.
The company says its inventory is stable and well-positioned for the back-to-school season.
Stack told CNBC: “We had some trailers that were backed up and our system was congested. “We’ve worked through the majority of that and it should all be cleared up by the end of this month, probably the second week of September.”
– Courtney Reagan of CNBC contributed to this report.
