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Dick’s Sporting Goods (DKS) Q2 earnings report

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Cars are seen parked in front of a Dick’s Sporting Goods store at Monroe Marketplace in Pennsylvania.

Paul Weaver | SOPA Images | LightRocket | Getty Images

Dick’s Sporting Goods on Tuesday reported quarterly earnings and revenue that topped analysts’ expectations and boosted its financial outlook for the yr.

The sporting goods retailer said it now expects comparable store sales for 2022 to say no between 6% to 2%. It had previously forecast the figure to be down between 8% and a pair of%, after sales of sporting and outdoor equipment surged throughout the pandemic.

Its shares closed up lower than 1%.

For the total yr, Dick’s now expects adjusted earnings per share to be between $10 and $12. That is up from its previous forecast of $9.15 and $11.70.

Dick’s noted that its net sales for the quarter were up significantly from the identical period in 2019. Executive Chair Ed Stack said results show the corporate wasn’t only a beneficiary of upper sales throughout the pandemic but reflect the structural changes it made years ago.

Here’s what the corporate reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $3.68, adjusted, vs. $3.58 expected
  • Revenue: $3.11 billion vs. $3.07 billion expected

For the three months ended July 30, net sales fell 5% from a yr ago while comparable store sales declined 5.1%. An 8.4% decline in transactions was partially offset by a 3.3% increase in average ticket. Footwear, team sports, and golf were among the many best-performing categories, while athletic apparel was challenged by delayed shipments, the corporate said.

In an interview with CNBC, Stack noted the demand for Dick’s products within the “highs and lows of the economy” and cited the instance of somebody’s 10-year-old daughter needing greater sneakers for soccer.

“You do not walk as much as her, put your arm round her go, ‘Hey, honey, you realize what? Placed on your old cleats, curl up your toe and go play soccer.’ You go buy a recent, a recent pair of cleats,” he said.

The corporate said that its inventory level was healthy and well positioned for the back-to-school season.

“We had some trailers that were backed up and our system got clogged up,” Stack told CNBC. “We have worked through the overwhelming majority of that and it will be all cleaned up by the tip of this month, possibly the second week of September.”

— CNBC’s Courtney Reagan contributed to this report.

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