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

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

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 revenue 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 closed the day up nearly 17%.

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 surveyed by Refinitiv had expected.

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

CEO Lauren Hobart said the retailer 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%.

Digital sales accounted for 20% of total sales, up from 13% in 2019.

Dick’s now expects adjusted earnings in fiscal 2021 to be in a range of $8 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.