Dick’s Sporting Goods’ Strong Results, Outlook Offset by Inventory Concerns | Global News Avenue

Dick’s Sporting Goods (dicks) reported better-than-expected results and raised guidance on strong back-to-school sales and optimism about the upcoming holiday shopping season. Still, shares fell amid concerns about the company’s inventory levels.

The sporting goods retailer reported third-quarter earnings per share (EPS) of $2.75, with revenue rising 0.5% to $3.06 billion. Both exceeded estimates. Comparable store sales Compared with 1.9% in the same period last year, it increased by 4.2%.

CEO Lauren Hobart said Dick’s “had a great back-to-school season and continues to gain market share.” She added that the company believes in “our differentiated products, superior service and A powerful omnichannel experience that will resonate well with our athletes this holiday season.”

However, Chief Financial Officer Navdeep Gupta noted in the earnings call transcript provided by AlphaSense that Dick’s inventory levels are up 13% from 2023. Even so, he believes the company’s investments “are in some of our strongest products and we believe our inventory is clean and well-positioned as we enter the fourth quarter.”

Dick’s now expects full-year earnings per share of $13.65 to $13.95, compared with the previous forecast of $13.55 to $13.90. Sales are expected to be $13.2 billion to $13.3 billion, up from the previous range of $13.1 billion to $13.2 billion. Same-store sales are expected to rise 3.6% to 4.2%, compared with the previous forecast of 2.5% to 3.5%.

Dick’s Sporting Goods shares edged up 0.24% at noon on Tuesday, bringing their 2024 gain to more than 40%.