Dick's Sporting Goods' Strong Results, Outlook Offset by Inventory Concerns

Dick’s Sporting Goods (DKS) posted better-than-expected results and boosted its guidance connected beardown back-to-school income and optimism astir nan upcoming vacation shopping season. Still, shares turned little connected concerns astir nan company’s inventory levels.

The sporting equipment retailer reported 3rd 4th net per stock (EPS) of $2.75, pinch gross up 0.5% to $3.06 billion. Both exceeded estimates. Comparable shop sales changeable up 4.2% compared to 1.9% nan twelvemonth before. 

CEO Lauren Hobart said Dick’s “had an fantabulous back-to-school play and continued to summation marketplace share.” She added that nan institution believes “our differentiated product, value work and powerful omni-channel acquisition will resonate good pinch our athletes this vacation season."

However, CFO Navdeep Gupta noted successful a transcript of nan net telephone provided by AlphaSense that Dick’s inventory level accrued 13% from 2023. Even so, he based on that nan firm’s finance "is successful immoderate of our strongest merchandise offerings, and we judge our inventory is cleanable and well-positioned arsenic we participate nan 4th quarter."

Dick’s now sees full-year EPS of $13.65 to $13.95, versus nan earlier forecast of $13.55 to $13.90. It anticipates income of $13.2 cardinal to $13.3 billion, up from nan erstwhile $13.1 cardinal to $13.2 billion. Comparable shop income are predicted to turn 3.6% to 4.2%, compared to its earlier outlook of 2.5% to 3.5%.

Shares of Dick’s Sporting Goods were up somewhat to 0.24% mid-day Tuesday, and person gained much than 40% successful 2024.