Dick’s Sporting Goods has defied expectations by reporting stronger-than-expected third-quarter earnings, despite the sports apparel and footwear market experiencing a downturn. The company recorded a 2.8% increase in net sales to $3.04 billion and a 10% rise in adjusted earnings per share to $2.85, beating analysts’ predictions. This reversed a trend from August when the company missed Wall Street expectations for the first time in three years.
Dick’s Sporting Goods also increased its full-year 2023 outlook for comparable store sales and earnings, bucking the trend of revenue declines or missed expectations from other major players in the industry like Nike, Under Armour, Adidas, and Puma during the third quarter earnings season.
The CEO of Dick’s Sporting Goods, Lauren Hobart, expressed optimism about the future, saying that their consumers are not trading down to lower-quality merchandise and have held up well amidst economic challenges. As a result of the strong earnings report, Dick’s stock saw a nearly 7% increase in early trading on the New York Stock Exchange, although it is still working to recover from a 24% drop in August.
With the critical holiday shopping season approaching, Dick’s Sporting Goods is optimistic about continued success. Hobart said that their store teams are pumped to deliver an amazing holiday experience but are cautious about the macroeconomic environment because they know consumers are going through a lot right now.