Dick’s Sporting Goods inventory grows as more shoppers and spend more

Key takeaways

Dick’s Sporting Goods beat first-quarter earnings and sales estimates as its stores attracted more customers who spent more money.
Comparable sales rose 5.3%, more than double analyst expectations.
The sports and recreation equipment retailer improved its full-year adjusted earnings and comparable store sales forecasts.

Shares of Dick’s Sporting Goods (DKS) rose on Wednesday after the sports and recreation retailer posted better-than-expected results and improved its outlook as its stores saw an increase in shoppers spending more.

The company reported first-quarter earnings per share (EPS) of $3.30, with net sales increasing 6% year-over-year to $3.02 billion. Both exceeded estimates.

Comparable store sales increased 5.3%, compared to 3.6% a year earlier. Dick’s said this was due to an increase in transaction volume and average ticket volume. The profit before tax (EBT) margin was 11.3%.

“Dick’s basic strategies and execution deliver good results.”

Chief Executive Officer (CEO) Lauren Hobart explained that “the company’s core strategies and execution are delivering strong results and we continue to increase market share.” She added that due to strong first-quarter results and expectations for continued demand, Dick’s is raising its full-year forecast.

The company now forecasts 2024 EPS in the range of $13.35 to $13.75, compared to the previous forecast of $12.85 to $13.25. It anticipates comparable store sales growth of 2.0% to 3.0% compared to its prior forecast of 1.0% to 2.0% growth.

Shares of Dick’s Sporting Goods rose 15% to $224.30 as of 10:06 a.m. ET on Wednesday, after setting a new yearly high of $228.36 earlier in the session. In 2024, they will increase by over 50%.