Dick’s Sporting Goods’ shares are steadily climbing — up nearly 8 percent as of 10:20 a.m. ET today — after the firm announced second quarter results that topped market forecasts.
The sporting goods retailer said its Q2 net income advanced less than 1 percent, to $91.4 million, or 82 cents per share — enough to significantly surpass analysts’ expectations for diluted earnings per share of 69 cents.
Revenues climbed 8 percent year-over-year, to $2 billion, also outpacing market estimates for revenues of $1.9 billion. While many retailers have struggled to produce positive comps in the second quarter — with consumer shifts to e-commerce and heavy sporting goods liquidations weighing on the space —Dick’s saw its Q2 same-store sales rise 2.8 percent.
Looking ahead, Dick’s chairman and CEO Edward Stack said the company is turning its attention to “capturing displaced market share” stemming from bankrupt Sports Authority’s collapse. But some liquidation pressures remain.
“While we did start to see some benefit toward the end of the second quarter, [there] is still some uncertainty about how much business may have been pulled forward during these liquidations, particularly in some of the important back-to-school categories such as footwear and apparel,” Stack said during the firm’s conference call. “We believe we are poised to pick up long-term market share but remain a bit conservative until we get more distance from liquidation events, which removed approximately $400 million of inventory from the market in a very short period of time.”
Dick’s upward adjusted in full-year guidance and now expects diluted EPS in the range of $2.90 to $3.05 versus the previous guidance of $2.60 to $2.90. Consolidated same-store sales are expected to increase 2 percent to 3 percent, versus the previous guidance of plus-or-minus 1 percent.