Dick's Sporting Goods Stock Surges On Solid Q3 Beat, Raised FY22 Forecast

Dick's Sporting Goods Inc DKS reported a third-quarter FY22 sales growth of 7.7% year-on-year to $2.96 billion, beating the consensus of $2.68 billion.
Comparable store sales increased 6.5% versus 12.8% growth a year ago.
Gross profit margin contracted 423 basis points Y/Y to 34.22%. The operating margin contracted 428 basis points to 11%, and operating income for the quarter fell 22.5% to $325.5 million.
The company held $1.4 billion in cash and equivalents as of October 29, 2022. Total inventory at the end of Q3 increased 35% Y/Y.
Adjusted EPS of $2.60 beat the analyst consensus of $2.19.
The company's Board of Directors declared a quarterly dividend of $0.4875 per share, payable in cash on December 30, 2022, to stockholders of record on December 9, 2022.
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Outlook: DKS raised the FY22 adjusted EPS outlook from $10.00 - $12.00 to $11.50 - $12.10 versus the consensus of $11.45.
The company also raised FY22 comparable store sales guidance to negative 3% - negative 1.5% from previously expected negative 6% - negative 2%.
Price Action: DKS shares are trading higher by 8.30% at $115.82 on the last check Tuesday.