Dick’s Sporting Goods earnings crush estimates as kids head back to team sports, retailer raises forecast

Earnings

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Mannequins stand next to merchandise displayed for sale at a Dick’s Sporting Goods store in West Nyack, New York.
Craig Warga | Bloomberg | Getty Images

Dick’s Sporting Goods reported Wednesday fiscal first-quarter earnings and sales that topped analyst estimates, saying kids returning to team sports boosted sales.

Dick’s also raised its full-year financial outlook, citing building momentum.

Shares jumped more than 6% on the news in premarket trading.

Here’s how Dick’s did for the period ended May 1, compared with what analysts were anticipating, using Refinitiv estimates:

  • Earnings per share: $3.79 adjusted vs. $1.12 expected
  • Revenue: $2.92 billion vs. $2.18 billion expected

Dick’s net income grew to $361.8 million, or $3.41 per share, from a loss of $143.4 million, or $1.71 per share, a year earlier. Excluding one-time adjustments, it earned $3.79 per share, well ahead of the $1.12 that analysts had expected, according to a Refinitiv survey.

Revenue grew 119% to $2.92 billion from $1.33 billion a year earlier, when Dick’s was forced to shut its stores for a period of time due to the pandemic. That beat estimates for $2.18 billion. On a two-year basis, sales were up 52%.

CEO Lauren Hobart said it saw a resurgence in its team sports business during the quarter, as kids returned to activities following a year when many youth sports were canceled. The company also saw heightened demand in the golf category.

Same-store sales surged 115% year over year, the company said, which included e-commerce growth of 14%.

Dick’s now expects adjusted earnings in fiscal 2021 to be in a range of $8.00 to $8.70 per share, with sales of $10.5 billion to $10.8 billion. Analysts had been looking for the company to earn $5.32 per share, after adjustments, on sales of $9.8 billion.

As of market close Tuesday, Dick’s shares are up about 50% year to date. The company has a market cap of $7.5 billion.

Find the full earnings press release from Dick’s here.

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