A shopping cart sits in front of a Dick’s Sporting Goods store in Daly City, California on August 26, 2020.
Justin Sullivan | Getty Images News | Good pictures
According to StreetAccount, the big-box sports store’s comparable sales grew 5.3% in its fiscal first quarter, beating the 2.4% growth analysts had expected.
The company said the growth was driven by increased transactions, which means more customers are shopping at Tix, and higher average ticket values, showing that shoppers are also spending more.
Based on LSEG’s survey of analysts, here’s how Dick’s did in its first fiscal year compared to Wall Street expectations:
- Stock Gains: $3.30 vs. $2.95 expected
- Revenue: $3.02 billion and expected $2.94 billion
The company’s net income for the three months ended May 4 was $275 million, or $3.30 per share, compared with $305 million, or $3.40 per share, a year earlier.
Sales rose to $3.02 billion, up 6% from $2.84 billion a year earlier.
The strong quarter led Dick to raise his full-year guidance.
The retailer now expects earnings per share to be between $13.35 and $13.75, down from its previous range of $12.85 to $13.25. That’s ahead of the $13.25 expected by analysts, according to LSEG.
CEO Lauren Hobart said she expects “strong demand from athletes,” underscoring the company’s outlook. Even so, sales guidance was slightly flat after the retailer’s first-quarter earnings beat.
Dick’s now expects comparable sales to rise between 2% and 3%, compared to previous guidance of 1% to 2%. The low end of that range is just short of the 2% growth expected by analysts, according to the Street Account.
According to LSEG, Dick’s expects full-year revenue to be between $13.1 billion and $13.2 billion.
Over the past year, consumers hit by stubborn inflation and high interest rates have pulled back on favorite items such as new clothes and shoes, but the apparel and footwear markets have shown some signs of life over the past two weeks.
Dick’s performance indicates that consumers are willing to buy new releases and other staples from big brands like Nike, Hoka, Adidas and On Running.
Similar trends were observed in other retailers. Last week, Ross Stores, Ralph Lauren, Urban Outfitters and TJX Companies all posted positive comparable sales. Even Target noted that apparel was a bright spot in an otherwise lackluster quarter after the retailer saw sluggish apparel sales in the year-ago period. Demand for new Hoka sneakers and UGG boots drove a 21% jump in sales at Deckers, and Shoe Carnival, which caters more to lower-income consumers, also saw sales grow 7%, beating Wall Street estimates, LSEG said.
More insights into the state of consumer health and its impact on apparel and footwear markets are yet to come. Abercrombie & Fitch and American Eagle both report earnings later Wednesday, while Foot Locker, Birkenstock and Gap will report on Thursday.
Read Dick’s full earnings release Here.
— Additional reporting by CNBC’s Robert Humm
