Important points from Dick’s Sporting Goods’ Q1 earnings report

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on May 26, 2021
  • Dick's Sporting Goods beats Wall Street estimates in the first quarter.
  • The retailer expects $10.515 billion to $10.806 billion in sales this year.
  • Dick’s shares were over 5% up in premarket trading on Wednesday.

Dick’s Sporting Goods Inc. (NYSE: DKS) reported its financial results for the fiscal first quarter on Wednesday that beat Wall Street estimates.

Financial performance

Dick’s Sporting Goods said its net income in the first quarter printed at $361.8 million (£255.44 million) that translates to $3.41 per share. In the same quarter last year, it had posted $143.4 million of loss, or $1.71 per share.

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On an adjusted basis, the retail company earned $3.79 per share in Q1. Dick’s Sporting Goods generated $2.919 billion of sales in the recent quarter versus the year-ago figure of $1.333 billion. According to FactSet, experts had forecast the company to post $2.23 billion of sales and $1.19 billion of adjusted EPS.

Comparable sales and balance sheet

According to Dick’s Sporting Goods, its comparable sales jumped 115% in the first quarter, with digital sales climbing by 14% and accounting for 20% of the total quarterly sales. FactSet consensus for same-store sales stood at a much lower 71.4% growth.

The sporting goods retailer valued its cash and equivalents at $1.86 billion at the end of Q1. Compared to 2019 (pre-pandemic), sales were up 52% in the recent quarter. In separate news from the United States, Abercrombie & Fitch said on Wednesday it swung to a profit in its recent quarter.

Guidance for the full financial year

For the full financial year, Dick’s Sport Goods now forecasts a higher $7.05 to $7.68 of per-share earnings and up to $8.70 of adjusted EPS. The NYSE-listed company expects $10.515 billion to $10.806 billion in sales this year.

In comparison, analysts are calling for $9.897 billion of sales and $5.46 of per-share earnings in fiscal 2021. Dick’s Sporting Goods had topped analysts’ estimates in the prior quarter (Q4) as well.

Executive chairman’s remarks

Commenting on the earnings report on Wednesday, executive chairman Ed Stack said:

“We are in a great lane right now, and 2021 will be our boldest and most transformational year in the Company’s history. We believe the future of retail is experiential, powered by technology and a world-class omni-channel operating model. Importantly, we are reimagining the athlete experience, both across our core business and through new concepts that we have been working on for the past several years, which will collectively propel our growth in the future.”

Impact on the share price

Dick’s Sporting Goods was more than 5% up in premarket trading on Wednesday. Including the price action, the stock is now trading at $90.85 per share versus $56.02 per share at the start of the year.

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