Dick’s Sporting Goods (NYSE: DKS) reported its third quarter financial results on Tuesday morning and topped analysts earnings and revenue estimates. Moreover, the retailer raised its guidance for the full-year, sending shares surging by 17.3%.
For the quarter, Dick’s reported earnings of USD 0.52 per share on revenue of USD 1.96 Billion. Refinitiv analysts expected earnings of USD 0.38 per share on revenue of USD 1.91 Billion.
Revenue during the quarter increased by 5.6% year-over-year. Consolidated same-store sales increased by 6%, beating analysts expectations of 2.9%.
Dick’s reported that eCommerce sales increased by 13% year-over-year. eCommerce penetration for the quarter accounted for approximately 13% of total news versus 12% the same period a year ago.
At the end of the quarter, Dick’s reported that it opened six Dick’s Sporting Goods stores and one new Golf Galaxy location, completing its 2019 store development program. As of November 2, 2019, the Company was operating 733 Dick’s Sporting Goods locations in 47 states, 95 Golf Galaxy, and 27 Field & Stream locations.
"We are very pleased with our strong third quarter results, as we delivered a 6.0% comp sales increase and meaningful gross margin expansion. We saw increases in both average ticket and transactions, as well as growth across each of our three primary categories of hardlines, apparel and footwear," said Edward W. Stack, Chairman and Chief Executive Officer. "As we head into the holiday season, we remain very enthusiastic about our business, and we are pleased to increase our full year sales and earnings outlook for the third time this year."
Based on the third quarter financial results, Dick’s revised its full-year 2019 forecast.
The Company is expecting earnings between USD 3.50 per share to USD 3.60 per share, raised from its previous guidance range of USD 3.30 per share to USD 3.45 per share. Additionally, the Company is expecting same-store sales to increase by 2.5% to 3% for the year compared to a 3.1% drop in 2018.
Lauren R. Hobart, President, added, "The momentum in our stores continued to build with our focus on service standards, recognition of great results and stronger marketing. Combining this with the successful openings of our new eCommerce fulfillment centers and enhanced website functionality, we continue to build one of the best omni-channel experiences in retail."