Dick's Sporting Goods stock gains as management lifts earnings forecast

The largest US full-line omni-channel sporting goods retailer beat Wall Street profit estimates

Shares of Dick's Sporting Goods gained Tuesday morning after the retailer of sports equipment and apparel delivered solid quarterly results and raised its financial forecasts for the full year.

Ticker Security Last Change Change %
DKS DICK'S SPORTING GOODS INC. 172.67 +3.79 +2.24%

Dick's  reported adjusted second-quarter earnings of $3.68 a share, higher than the consensus call for $3.59 among analysts tracked by FactSet. Same-store sales, which measure revenue at stores open for at least 12 months, declined 5.1%, better than analysts' expectations for a 6.9% drop.

Second-quarter net sales of $3.1 billion matched analysts' expectations.

Dick's Sporting Goods store on Thursday, April 9, 2020, at a mall in Tacoma, Wash. (AP Photo/Ted S. Warren)

But the market tends to price stocks according to what is expected to happen, rather than what is already in the books. Dick's said it expects adjusted earnings to be in the range of $10 to $12 per share for the full fiscal year, ending in January 2023. That is better than management's previous forecast of a result between $9.15 and $11.70. And the midpoint of the new range is a touch higher than analysts' consensus call for $10.92 a share. Same-store sales are now estimated to be in the range of negative 6% to negative 2% versus 2021, compared with management's prior estimate of a drop of as much as 8%. Analysts expected a decline of 4.4%.

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The stock was up 2.2% to $112.81 in Tuesday morning trading. It fell 0.6% on Monday, while the S&P 500 lost 2.1%.

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