Dick’s Sporting Goods reported better-than-expected third-quarter results and raised its outlook for the rest of the year, sending shares surging.
The sporting goods retailer earned $57.6 million, or an adjusted 66 cents a share, as net sales rose 5.6 percent to $1.96 billion. Wall Street analysts surveyed by Refinitiv were anticipating adjusted earnings of 38 cents a share on net sales of $1.91 billion. Consolidated same-store sales climbed 6 percent.
E-commerce sales climbed 13 percent versus a year ago and made up 13 percent of total net sales, up from about 12 percent last year.
Inventory increased 17.1 percent from last year due primarily to "strategic investments to support key growth categories," the company said.
“We are very pleased with our strong third-quarter results, as we delivered a 6 percent comp sales increase and meaningful gross margin expansion,” CEO Edward Stack said in a statement. “We saw increases in both average ticket and transactions, as well as growth across each of our three primary categories of hardlines, apparel and footwear.”
Looking ahead, Dick's sees earnings per diltued share of $3.50 to $3.60, up from the previous range of $3.30 to $3.45.
The company is continuing the strategic review of its hunt business.
Dick's shares are up 26.4 percent year-to-date, slightly better than the S&P 500's 25 percent gain.