Dick’s Sporting Goods Inc. jumped after reporting profit that surpassed Wall Street’s expectations, a sign the athletic retailer is maintaining its momentum despite consumers’ broader pullback from discretionary spending.
(Bloomberg) — Dick’s Sporting Goods Inc. jumped after reporting profit that surpassed Wall Street’s expectations, a sign the athletic retailer is maintaining its momentum despite consumers’ broader pullback from discretionary spending.
Adjusted earnings of $3.40 a share in the fiscal first quarter ended April 29 exceeded the average analyst estimate of $3.13. Revenue was in line with expectations.
Chief Executive Officer Lauren Hobart said Dick’s is gaining market share and that the number of transactions increased in the period. “Even as consumers face macroeconomic uncertainties, our athletes have continued to prioritize sport,” she said in the company’s quarterly statement.
The shares climbed 4.4% in early trading on Tuesday. The stock had risen 5.1% through Monday’s close.
Comparable sales, a key gauge of retail performance, fell slightly short of expectations in the period. Inventory also increased from a year earlier.
The largest US sporting-goods chain reaffirmed that it expects earnings, excluding some items, of $12.90 to $13.80 a share for this fiscal year. The Pittsburgh-based company also kept its outlook unchanged for comparable sales and capital expenditures.
Dick’s plans to open new stores and add square footage. It now operates 863 Dick’s stores and other shops like Golf Galaxy and Public Lands.
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