Dick’s Sporting Goods (NYSE:DKS) shares fell Tuesday despite the company reporting fiscal third-quarter earnings that outpaced analysts’ expectations, which led it to hike its annual forecast.
The drop comes as Dick’s stock has been on a tear, rising nearly 150% year to date as of market close on Monday. Shares fell about 3% before the market opened Tuesday, following the earnings release.
Dick’s Chief Executive Lauren Hobart said that consumer demand remained strong after the summer season and back-to-school rush, and that the company’s broad assortment of products — from golf clubs to running gear — allowed it to meet many shoppers’ needs.
In the three-month period ended Oct. 30, net income rose to $316.5 million, or $2.78 per share, from $177.2 million, or $1.84 a share, a year earlier.
Excluding items, it earned $3.19 per share, ahead of the $1.97 that analysts had been expecting.
Revenue rose roughly 14% to $2.75 billion from $2.41 billion a year earlier. That topped expectations for $2.50 billion.
Same-store sales, which track revenue at stores open for at least 12 months, rose 12.2%. Analysts surveyed by StreetAccount had been calling for a gain of 1.9%.
Dick’s said its online sales rose just 1% from a year earlier, when many consumers resorted to shopping online, and were up 97% on a two-year basis. E-commerce sales made up about 19% of its total business, up from 13% in 2019.
DKS shares cratered $8.29, or 5.9 %, to $131.99.
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