Dick’s Sporting Goods reported third-quarter earnings were down year-over-year due to lower gross margins but easily topped Wall Street expectations as same-store sales grew 6.5 percent. The sporting goods retailer lifted its guidance for the year.

 Adjusted earnings 0f $2.60 came in well above Wall Street’s consensus estimate of $2.24. Revenues of $3.0 billion topped Wall Street’s consensus estimate of $2.7 billion.

Highlights

  • Comparable store sales increased 6.5 percent on top of a 12.8 percent increase in the third quarter of 2021, a 23.2 percent increase in the third quarter of 2020 and a 6.0 percent increase in the third quarter of 2019;
  • Net sales of $3.0 billion increased by 7.7 percent versus the third quarter of 2021 and increased by 50.8 percent versus the third quarter of 2019;
  • Delivered earnings per diluted share of $2.45 and non-GAAP earnings per diluted share of $2.60; Delivered pre-tax income as a percentage of net sales of 10.3 percent, which is over two and a half times its Q3 2019 GAAP rate and over three times the Q3 2019 non-GAAP rate;
  • Raised full-year 2022 comparable store sales guidance to a range of negative 3.0 percent to negative 1.5 percent, up from negative 6.0 percent to negative 2.0 percent previously;
  • Raised full-year 2022 earnings per diluted share guidance to $10.50 to 11.10, up from $8.85 to 10.55 previously; and
  • Raised full-year 2022 non-GAAP earnings per diluted share guidance to $11.50 to 12.10, up from $10.00 to 12.00 previously.

Executive Commentary
“Our Q3 results demonstrate the continued success and strength of our transformational journey. Our strategies continue to work as we reimagine the athlete experience and offer a compelling and differentiated assortment as well as a best-in-class omnichannel ecosystem. I’d like to thank all our teammates for their hard work and unwavering dedication to our business,” said Ed Stack, executive chairman.

“We delivered an exceptionally strong third quarter with our comps increasing 6.5 percent and EBT margin of 10.3 percent, which was over three times our 2019 non-GAAP rate.  Dick’s is a growth company, and our Q3 sales results are powerful evidence of our sustainable growth story. Because of our continued strong performance, quality of inventory and the confidence we have in our business, we are raising our full-year 2022 outlook,” said Lauren Hobart, president and chief executive officer.

Quarterly Dividend
On November 21, 2022, the company’s Board of Directors authorized and declared a quarterly dividend in the amount of $0.4875 per share on the company’s Common Stock and Class B Common Stock. The dividend is payable in cash on December 30, 2022 to stockholders of record at the close of business on December 9, 2022.

Full Year 2022 Outlook

  • EPS  in the range of $10.50 to $11.10 (prior,  $8.85 to $10.55); 
  • EPS in the range of $11.50 to 12.10 on a non-GAAP basis, which eliminates the impact of assumed share settlement of the Convertible Senior Notes (prior, $10.00 to 12.00); and
  • Comparable store sales—negative 3.0 percent to negative 1.5 percent (prior, negative 6 percent to negative 2 percent).

Photo courtesy Dick’s SG