Dick’s Sporting Goods managed to avoid the demons that have haunted its competitors in the first quarter, delivering gains in both earnings and sales that exceeded expectations. As a result, the company’s stock rose in pre-market trading.
Last week, Foot Locker missed projections, sending the stock of that retailer spiraling down along with one of its largest brands, Nike, which has drawn concern from analysts because of its focus on direct-to-consumer sales.
But Dick’s, which is celebrating its 75th anniversary this year, reported a 17 percent increase in net income for the period ended April 29 to $305 million from $261 million the prior year on a 5.3 percent gain in sales to $2.8 billion from $2.7 billion. Comparable-store sales rose 3.4 percent in the period, driven by a 2.7 percent increase in transactions as well as higher average ticket prices, the company said.
As a result of the strong showing, the Pittsburgh-based retailer reaffirmed its 2023 outlook of full-year earnings per diluted share of $12.90 to $13.80 with comparable-store sales projected to be flat to up 2 percent.
“Our strong start to 2023 demonstrates the sustained strength of our business,” said Ed Stack, executive chairman. “We are very enthusiastic about our strategies and continue to invest in our future to fuel long-term growth opportunities, including a return to square footage growth.”
Lauren Hobart, president and chief executive officer, added: “We are very pleased with our first quarter results. Even as consumers face macroeconomic uncertainties, our athletes have continued to prioritize sport and rely on Dick’s to meet their needs, and we continue to gain market share. Our Q1 sales grew 5.3 percent, driven by strong comps and healthy transaction growth, and we delivered another strong double-digit EBT margin. We remain confident in our ability to drive sales and profitability growth in 2023 and over the long term.”
Dick’s is the country’s largest sporting goods retailer with more than 850 stores across the country.