Dick’s Sporting Goods maintained its momentum in the third quarter, reporting earnings that crushed analysts’ expectations and raising its full-year outlook for the third time this year.
The nation’s largest sporting goods retailer reported that its net income totaled $316.5 million, or $2.78 per share, in the quarter ended Oct. 30, up from $177.2 million, or $1.84 per share, in the year-ago period. Adjusted earnings per share of $3.19 were way ahead of analysts’ estimates of $2.06.
Net sales increased 13.9% to $2.75 billion from the same period last year, topping estimates of $2.51 billion, and were up 40% compared to the third quarter of 2019. Same-store sales rose 12.2%, well ahead of estimates.
Online sales inched up 1% from a year ago and were up 97% on a two-year basis. E-commerce sales accounted for 19% of total revenue, up from 13% in 2019.
“Consumer demand remained strong, and our differentiated product assortment continued to drive exceptional sales and merchandise margin momentum,” said Lauren Hobart, president and CEO. "Our fourth quarter is off to a strong start, and we are pleased to increase our full-year outlook for the third time this year.”
During the third quarter, Dick’s launched a brand new store concept, the outdoor-focused Public Lands. It also opened its first Golf Galaxy Performance Center, an update on its Golf Galaxy stores, which it has been updating.
Earlier in the year, the retailer launched its largest and most experiential store format to date, Dick’s House of Sport. The company also is adding soccer shops to its namesake location and opening clearance outlets. And in November, it announced a tie-in Nike that allows customers to shop for exclusive Nike shoes and apparel on Dick’s website.
“As we said before, we believe this will be the most transformational year in our history, and we expect to continue this transformation into 2022,” said Ed Stack, executive chairman. “I couldn't be more excited about the future of Dick’s Sporting Goods.”
Dick's expects full-year sales of $12.12 billion to $12.19 billion and comparable sales growth of 24% to 25%. Earnings per share are expected to range from $12.88 to $13.06, with adjusted earnings per share of $14.60 to $14.80.
As of October 30, 2021, the company operated 734 Dick’s Sporting Goods locations across the United States. The company also owns and operates Golf Galaxy, Field & Stream and Public Lands specialty stores, as well as GameChanger, a youth sports mobile app for scheduling, communications, live scorekeeping and video streaming.