DICK'S Sporting Goods Achieves Remarkable Third Quarter Growth

DICK'S Sporting Goods Reports Strong Third Quarter Results

DICK'S Sporting Goods, Inc. (NYSE: DKS), the largest full-line omni-channel sporting goods retailer in the U.S., has released its impressive third quarter results. With a significant sales figure and a robust earnings report, the company is poised for a strong finish in 2024.

Sales and Earnings Overview

During the recently concluded quarter, DICK'S achieved net sales of $3.06 billion, alongside earnings per diluted share of $2.75. These results reflect a remarkable 4.2% growth in comparable sales over the same quarter last year. The numbers also account for the expected adverse impacts from the calendar shift, estimated at about $105 million in sales and $0.35 per diluted share.

Year-To-Date Performance

Looking at the broader picture, the year-to-date comparable sales growth stands at 4.7%, demonstrating strong momentum for the organization. Additionally, the company's earnings before tax (EBT) margin reached 11.8%, contributing to earnings per diluted share tallying at $10.43. These results highlight DICK'S commitment to enhancing operational efficiency while serving its customers effectively.

Updated Guidance for 2024

With confidence in continued strong performance, DICK'S has raised its guidance for the full year 2024. The company now expects comparable sales growth in the range of 3.6% to 4.2%, up from previous estimates of 2.5% to 3.5%. Furthermore, the company's earnings per share guidance has also been increased to a range of $13.65 to $13.95, reflecting a positive outlook for the upcoming periods.

Leadership Insights

Ed Stack, Executive Chairman, expressed pride in the results, noting that these numbers reflect ongoing strategic investments in innovative retail concepts such as the House of Sport and DICK'S Field House. He highlighted the essential role these new formats play in engaging with athletes and communities, paving the way for sustained growth.

CEO Lauren Hobart emphasized that the solid sales growth of 4.2% in the third quarter can be attributed to their unwavering focus on strategic initiatives and exceptional team execution. Notably, the successful back-to-school season helped propel them forward, increasing market share and strengthening the overall brand's presence.

Third Quarter Operating Results

The company outlined its operating results for the third quarter as follows:

• Net sales: $3.06 billion
• Comparable sales growth: 4.2% (previous year: 1.9%)
• EBT margin: 9.7%
• Net income: $228 million, reflecting a 13% increase

Quarterly Dividend Declared

As part of its financial performance, DICK'S Board of Directors authorized a quarterly dividend of $1.10 per share, to be paid in cash on December 27, 2024, to shareholders of record by December 13, 2024.

Looking Ahead

DICK'S Sporting Goods remains committed to supporting athletes and fostering community engagement through continual improvement across its offerings. The increased guidance and profitability figures underline the strength of its core operations, indicating a fruitful year ahead.

Frequently Asked Questions

1. What were the key metrics reported for DICK'S third quarter?

In the third quarter, DICK'S reported net sales of $3.06 billion, with a comparable sales growth of 4.2% and earnings per diluted share of $2.75.

2. How did DICK'S improve its sales outlook for 2024?

DICK'S raised its full year guidance for comparable sales growth to a range of 3.6% to 4.2%, indicating strong market confidence and positive customer engagement strategies.

3. What is the company's approach to community engagement?

DICK'S actively engages with customers and communities through innovative store concepts such as the House of Sport and community events aimed at supporting youth sports.

4. What dividend was declared for DICK'S Sporting Goods?

The Board of Directors announced a quarterly dividend of $1.10 per share, payable on December 27, 2024.

5. How does DICK'S plan for future growth?

DICK'S strategy includes investing in product differentiation, enhancing customer service, and expanding its omni-channel experience to cater confidently to athletes' needs.

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