Dick’s Sporting Goods Posts Beat And Raise Quarter

U.S. retailer Dick’s Sporting Goods (DKS) has reported better-than-expected financial results and raised its forward guidance.

For what was it fiscal second quarter, Dick’s announced earnings per share (EPS) of $4.38 U.S., which beat the $4.32 U.S. expected on Wall Street.

Revenue in the period totaled $3.65 billion U.S., which was ahead of the $3.63 billion U.S. expected among analysts. Sales were up 5% from a year earlier.

During the quarter, comparable sales grew 5%, ahead of expectations of 3.2% growth.

Looking ahead, Dick’s Sporting Goods said it now expects comparable sales to grow between 2% and 3.5%, topping analyst estimates of 2.9% growth.

Management said earnings per share for all of this year are now expected to be between $13.90 U.S. and $14.50 U.S., up from a previous range of $13.80 U.S. to $14.40 U.S.

Wall Street had been looking for full-year earnings of $14.39 U.S. per share.

While Dick’s comparable sales guidance came in ahead of expectations, its full-year revenue outlook was slightly below forecasts.

The company said it expects revenue of $13.75 billion U.S. to $13.95 billion U.S., below consensus estimates of $14 billion U.S.

Executives at Dick’s said the latest forward guidance includes the impact of tariffs. However, its guidance doesn’t include any potential impact from its acquisition of rival Foot Locker (FL).

In May of this year, Dick’s announced that it would acquire Foot Locker for $2.4 billion U.S., giving it a competitive edge in the wholesale sneaker market.

Earlier this week, Dick’s Sporting Goods said that it has received all the necessary regulatory approvals to complete the Foot Locker purchase.

DKS stock is down 0.40% this year and trading at $226.01 U.S. per share.