Dick's Sporting Goods Raises Outlook After Solid Q2 Results Amid Growth In Average Ticket And Transactions

Dick’s Sporting Goods Inc DKS reported second-quarter adjusted earnings per share of $4.37, beating the street view of $3.83.

Quarterly sales of $3.474 billion (up 7.8%) beat the analyst consensus of $3.437 billion.

Comparable sales rose 4.5% compared with 2% growth a year ago. Gross profit margin expanded to 36.73% from 34.42% year over year.

“We delivered a very strong second quarter…Our Q2 comps were driven by growth in average ticket and transactions, and with growth in sales, gross margin expansion and SG&A leverage, we delivered EBT margin of nearly 14%,” said Lauren Hobart, President and Chief Executive Officer.

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The company exited the quarter with cash and equivalents worth $1.69 billion and net inventories worth $3.178 billion.

On September 3, 2024, the company authorized and declared a quarterly dividend in the amount of $1.10 per share. The dividend is payable in cash on October 4 to stockholders of record at the close of business on September 20.

Last week, the company revealed in a securities filing that it had been targeted by a cyberattack, resulting in the breach of certain confidential information. However, the firm had confirmed that it had no knowledge that this incident disrupted business operations.

The sporting goods store follows a trend of other retailers that have issued cautious or subdued guidance for the latter half of the fiscal year, as companies brace for potential impacts from the upcoming presidential election in November, which some fear might lead to a slowdown in consumer spending, reported CNBC.

Outlook: Dick’s Sporting Goods has raised its full-year 2024 EPS guidance to between $13.55 and $13.90, up from the previous range of $13.35 to $13.75 and slightly below the consensus estimate of $13.79.

The company continues to see net sales of $13.1 billion to $13.2 billion (consensus $13.23 billion). Dick’s Sporting Goods sees comparable sales growth of 2.5% to 3.5% (prior view: 2.0% to 3.0%).

Price Action: DKS shares are trading lower by 0.70% to $230.50 premarket at last check Wednesday.

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