Mannequins stand alongside goods for sale in a Dick’s Sporting Goods store in West Nyack, New York.
Craig Warga | Bloomberg | Getty Images
Dick’s Sporting Goods on Wednesday reported first quarter earnings and sales that exceeded analyst estimates. Children who returned to team sports increased sales.
Dick’s also raised its financial outlook for the full year, citing the momentum of the buildup.
The stocks rose more than 6% on the premarket trading news.
Here’s how Dick’s has performed for the period ending May 1, compared to analyst expectations based on refinitive estimates:
- Earnings per share: $ 3.79 adjusted versus $ 1.12 expected
- Revenue: $ 2.92 billion versus $ 2.18 billion expected
Dick’s net income rose from a loss of $ 143.4 million, or $ 1.71 per share last year, to $ 361.8 million, or $ 3.41 per share. Without one-off adjustments, the company earned $ 3.79 per share, well above the $ 1.12 analysts had expected according to a refinitive poll.
Revenue rose 119% to $ 2.92 billion from $ 1.33 billion a year ago when the pandemic forced Dick’s to close its stores for a period of time. That beat estimates at $ 2.18 billion. On a two-year basis, sales increased 52%.
CEO Lauren Hobart said there was a resurgence in his team sports business in the quarter as the kids returned to activities after a year when many youth sports were canceled. The company also saw increased demand in the golf category.
Revenue in the same store increased 115% year over year, which translates into e-commerce growth of 14%.
Dick’s now expects adjusted earnings of between $ 8.00 and $ 8.70 per share for fiscal 2021 on sales of $ 10.5 to $ 10.8 billion. Analysts had been looking for a company that, after adjustments, should make $ 5.32 per share on revenue of $ 9.8 billion.
At the close of trading on Tuesday, Dick’s shares were up about 50% year-to-date. The company has a market capitalization of $ 7.5 billion.
The full press release on Dick’s earnings can be found here.