With better-than-expected revenues and earnings, DICK’S Sporting Goods’ eCommerce sales jumped 15 percent in the first quarter. The company’s overall reported quarterly earnings beat estimates of analysts as the company increased its outlook for the full year, CNBC reported.
The retailer reported net income of $57.5 million or 61 cents for each share. And the retailer notched 62 cents per share in earnings with the exclusion of a legal settlement and asset impairment costs, which pulled ahead of analysts’ expectations of 58 cents a share. At the same time, sales reached $1.92 billion — ahead of analysts’ expectations of $1.9 billion. The retailer foresees earning, on an adjusted basis, $3.20 to $3.40 a share, which marked an increase from a prior window of $3.15 to $3.35.
Chief Executive Ed Stack noted that the retailer’s same-store sales “turned positive in March and remained positive in April, as we started to see the benefits of our key strategies and investments.” Earlier in the week, Bank of America had forecasted that the retailer would return to same-store sales growth in the second quarter. Its analysts pointed out fewer hunting category headwinds along with shipments from Adidas as well as Nike of footwear styles such as the Adidas Ultraboost 19 and the Nike Air Max 720 in addition to “continued strength in outdoor equipment.”
The news comes as DICK’S Sporting Goods revealed that its net income in the fourth quarter and for the year fell short even though its eCommerce sales grew. Fourth quarter net income was $102.6 million in comparison to $116 million in the previous year and net income for the year was $319.9 million, down from $323.4 million in 2017.
Stack said in a March press release, “We are pleased with our fourth quarter results. Our core business performed quite well, as our athletes have responded positively to many of our initiatives, resulting in comp sales gains across key categories and double digit percentage increases in eCommerce and private brand sales.”