Dick’s Sporting Goods posted better-than-expected third-quarter results driven by a strong back-to-school season. It also raised its fiscal-year earnings forecast.
On Tuesday before markets opened, Dick’s reported adjusted earnings of $2.85 a share; analysts tracked by FactSet were expecting $2.45 a share. Revenue of $3.04 billion was higher than the $2.94 billion expected.
Shares of
Dick’s
(ticker: DKS) rose 9% in premarket trading.
“We had a very strong back-to-school season,” CEO Lauren Hobart wrote.
Dick’s was a pandemic darling; benefiting from the rise of outdoor equipment bikes and an increased interest in golf during the lockdowns. Back in August on its earnings call the company had said it was still holding on to those gains as trends in some categories remain above 2019.
It also rolled out a business optimization plan around that time to streamline its cost structure and organizational design. It laid off a part of its workforce in accordance with the plan in August.
The sporting goods chain said on Tuesday it currently anticipates an additional pre-tax charge of approximately $10 million in the current fourth quarter related to actions optimizing the business.
The forecast for comparable store sales, which measures growth in revenue from existing and relocated store locations, was raised to a range of 0.5% to 2%, up from flat to up to 2% previously. The outlook for fiscal-year adjusted profit was raised to $12 to $12.60 a share, up from the previous guidance of $11.50 to $12.30
Write to Karishma Vanjani at [email protected].
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