Dick’s Sporting Goods’ surprisingly strong third-quarter earnings countered a darkening outlook throughout the sports apparel and footwear market — and not a moment too soon.
The company reported on Tuesday that net sales rose 2.8% to $3.04 billion and adjusted earnings per share rose 10% to $2.85. Those numbers not only beat analyst projections but also meaningfully reversed an August report that missed Wall Street expectations for the first time in three years.
Dick’s also slightly raised its full-year 2023 outlook in comparable store sales and earnings.
The results provide a new sense of hope in a third-quarter earnings season that has seen revenue declines or missed Wall Street expectations from the likes of Nike, Under Armour, Adidas, and Puma.
“Our consumer is not trading down [to lower-quality merchandise], and our consumers have actually held up very, very well,” said Lauren Hobart, Dick’s president and CEO.
Dick’s stock rose nearly 7% in early trading on the New York Stock Exchange following the report. Shares in the company, however, are still recovering from a 24% plunge in August.
The company is now looking to see if its newfound momentum carries into the critical holiday shopping season.
“We are very excited about what we have within our control for Q4,” Hobart said. “Our [store] teams are pumped to deliver an amazing holiday experience, but we’re balancing that with caution about the macroeconomic environment, because we know consumers are going through a lot right now.”
