Shares for Dick’s Sporting Goods Inc. were up nearly 7% in premarket trading after the company posted first-quarter earnings that blew past estimates.
The Coraopolis, Pa.-based sporting goods retailer logged profits of $58.4 million, or adjusted earnings of 62 cents per share — well ahead of consensus bets of 59 cents.
Revenues also rose 0.6% to $1.92 billion, beating Wall Street expectations by $20 million. Same-store sales remained flat, compared with the first quarter of 2018 when the figure declined 2.5%.
“Same-store sales turned positive in March and remained positive in April, as we started to see the benefits of our key strategies and investments,” said chairman and CEO Ed Stack. “We are very enthusiastic about our business and are pleased to increase our full-year earnings outlook.”
Dick’s is now looking at 2019 guidance of adjusted earnings per share of $3.20 to $3.40, versus the prior range of $3.15 to $3.35. It expects same-store sales to be positive to a gain of 2%.
The company also saw positive growth in e-commerce sales, which improved 15% during the first quarter. It plans to open seven new stores and relocate three others this year.
“We made great progress in executing against our strategic priorities and investments as we remain focused on improving the in-store and online experience for our athletes and driving productivity improvements across our business,” president Lauren Hobart said. “As we continue to build the best omnichannel experience in sporting goods, we see significant opportunity to drive competitive advantage in the marketplace and strengthen our leadership position.”
The report comes just over a year after Dick’s announced changes to its firearm sales policies in the wake of the deadly shooting at Marjorie Stoneman Douglas High School in Parkland, Fla. Last February, the retailer said that it would halt sales of assault-style rifles in its stores and implement a 21-and-over age rule for purchases of firearms.
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