Shares of Dick’s Sporting Goods (DKS) are up 7% after the retailer announced first-quarter financial results that beat Wall Street forecasts across the board.
The Binghamton, New York-based company reported earnings per share (EPS) of $3.30 U.S. versus $2.95 U.S. that was expected among analysts who track the company’s progress.
Revenue in the first three months of the year totaled $3.02 billion U.S. versus $2.94 billion U.S. that was the consensus forecast on Wall Street. Sales were up 6% from a year earlier.
Management at Dick’s Sporting Goods attributed the strong results to consumers spending more money on sneakers and athletic gear.
Comparable sales at the retailer rose 5.3% during Q1, well ahead of the 2.4% growth that analysts had expected.
The company said that more customers are shopping at Dick’s and spending more on their purchases.
The strong first-quarter print led Dick’s to raise its full-year guidance.
The retailer now expects earnings of $13.35 U.S. to $13.75 U.S., up from a previous outlook of $12.85 U.S. to $13.25 U.S.
The new guidance is ahead of the $13.25 U.S. that analysts had penciled in for the company.
Dick’s is also expecting full-year revenue of $13.10 billion U.S. to $13.20 billion U.S, which is inline with estimates of $13.16 billion U.S.
The company said that consumers are still willing to buy popular sneaker brands such as Hoka and On Running even as they cutback discretionary spending in other areas.
Before today (May 29), the stock of Dick’s Sporting Goods had risen 53% over the last 12 months to trade at $195 U.S. per share.
