Dick’s Sporting Goods (DKS) earnings Q3 2023

A Dick’s Sporting Goods store stands in Staten Island on March 09, 2022 in New York City.

Spencer Platt | Getty Images

Shrink who? 

Sales and profit at Dick’s Sporting Goods bounced back in the fiscal third quarter, leading the retailer to raise its full-year guidance Tuesday after it shocked investors earlier this year when it slashed its outlook over theft concerns.

Dick’s beat Wall Street’s estimates on the top and bottom lines for the period. In a news release, the company said it’s “excited” for the holiday season after seeing strong back-to-school sales, but is remaining “cautious” given the uncertain consumer backdrop.

Dick’s shares closed about 2% higher on Tuesday.

Here’s how the athletic goods retailer performed during its fiscal third quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv:

  • Earnings per share: $2.85, adjusted, vs. $2.44 expected
  • Revenue: $3.04 billion vs. $2.94 billion expected

The company’s reported net income for the three-month period that ended Oct. 28 was $201 million, or $2.39 per share, compared with $228 million, or $2.45 per share, a year earlier. Excluding one-time items, Dick’s saw earnings per share of $2.85. 

Sales rose to $3.04 billion, up about 2.8% from $2.96 billion a year earlier.

For the full year, the company now projects earnings per share to be between $11.45 and $12.05, compared with the $11.27 to $12.39 range that analysts had expected, according to LSEG. Dick’s raised its guidance from a prior range of $11.33 to $12.13. But it still falls below the original outlook the company set earlier this year, when it said it expected earnings of $12.90 to $13.80.

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Dick’s also raised its comparable sales outlook slightly and expects them to be up between 0.5% and 2%, compared with a previous range of flat to up 2%. Much of that range would top the 0.7% increase that analysts had expected, according to StreetAccount. 

The raised outlook appeared tempered after the strong third-quarter beats. Executives said the company is remaining “cautious” ahead of the holiday season, mirroring sentiment from other retailers that are concerned demand will be tepid.

On a call with analysts, President and CEO Lauren Hobart said the company tried to model “an appropriate level of caution” into the guidance because of the “uncertain macroeconomic environment.”

“We are being conservative on the low end of our guidance,” Hobart said. “We compete with everyone in the world during the fourth quarter, and also the consumer is going through an awful lot, and we’re just trying to be cautious.”

Throughout the call, executives repeatedly said they were optimistic about the holiday, but only for the things “within our control” — such as product assortment, stores and staff. The veiled concern underscored the retailer’s uncertainty over demand and its efforts to hedge its bets and not overpromise.

When Dick’s reported fiscal second-quarter…

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