Dick’s Sporting Goods (DKS) Q1 2024 Earnings | Wilnesh News

dick’s sporting goods Shoppers are spending more on new sneakers and gear, the retailer said on Wednesday, leading the retailer to raise its full-year profit forecast.

The large sporting goods store’s first-quarter comparable sales rose 5.3%, well above analysts’ expectations of 2.4%, according to StreetAccount.

The company said growth was driven by a 2.7% increase in transaction volume, meaning more customers were shopping at Dick’s, and a 2.6% increase in average ticket prices, indicating shoppers were also spending more.

The “shrink” Dick refers to, a retail term for lost or stolen merchandise, was higher than expected last year and has since increased less than the company expected.

The company’s shares rose more than 15% intraday.

Here’s how Dick’s performed in the period compared to Wall Street expectations, according to a survey of analysts by LSEG:

• Earnings per share: $3.30 vs expected $2.95
• income: US$3.02 billion, expected US$2.94 billion

The company reported net income of $275 million, or $3.30 a share, for the three-month period ended May 4, compared with $305 million, or $3.40 a share, a year earlier.

Sales increased to US$3.02 billion, an increase of approximately 6% from US$2.84 billion in the same period last year.

“We’re seeing growth in all different areas of our business. Footwear, apparel, overall strong product lines are all growing,” Chief Executive Lauren Hobart told analysts on the earnings call. “Consumer Definitely prioritizing healthy and active lifestyles. You’ll see people running, walking, being outdoors, but I think the most important thing is that we give them an experience that they clearly choose, both through our stores. products and the experiences we offer in-store and online.

Hobart said strong quarterly results prompted Dick’s to raise full-year guidance, but the company remains cautious about the second half.

The retailer now expects earnings per share of $13.35 to $13.75, up from the previous range of $12.85 to $13.25. The price was higher than analysts’ expectations of $13.25, according to LSEG.

The retailer’s caution was reflected in its sales guidance, which fell slightly after first-quarter revenue beat expectations.

Dick’s now expects comparable sales to grow 2% to 3%, compared with previous guidance of 1% to 2% growth. The lower end of that range was just in line with analysts’ expectations for 2% growth, according to StreetAccount.

Dick’s expects full-year revenue to be between $13.1 billion and $13.2 billion, in line with expectations of $13.16 billion, according to LSEG.

“What we’ve done today on our full-year guidance reflects the results we posted in the first quarter, and we’ve largely maintained our guidance,” finance chief Navdeep Gupta told analysts. “Expectations for the second quarter through the fourth quarter are somewhat disconnected from external consensus expectations, but I would say, you know, we’re being appropriately cautious as we think about the second quarter. “

Consumers, hammered by stubborn inflation and high interest rates last year, cut back on purchases of discretionary items like new clothes and shoes, but the apparel and footwear market has shown some signs of recovery in the past few weeks.

Dick’s performance shows consumers are willing to spend money on new products and other staples from big brands, e.g. NikeDisappointed, adidas and running, and spending money on things they may not necessarily need but are happy to have.

Read Dick’s full earnings report here.

—Additional reporting by CNBC’s Robert Hum.