Dick’s Sporting Goods shares rise after raising full-year outlook – Footwear News

Dick’s Sporting Goods raised its guidance for the full year and announced new earnings expectations for the fourth quarter.

For the full year 2021, Dick’s forecasts diluted earnings per share of between $ 13.70 and $ 13.79, revised from previous guidance of between $ 12.88 and $ 13.06. The company raised its forecast for non-GAAP diluted earnings per share to between $ 15.50 and $ 15.60. Dick’s expects consolidated same-store sales to increase 25.8% to 26.1%, up from previous forecast of 24% to 25%.

For the fourth quarter, Dick’s expects diluted earnings per share of between $ 3.00 and $ 3.09 and non-GAAP diluted earnings per share of between $ 3.45 and $ 3.55.

Dick’s shares closed 1.4% higher on Thursday.

Dick’s previously raised its outlook for the full year after another successful run of earnings in the third quarter. The company welcomed new CEO Lauren Hobart in early 2021, who has already led the retailer for three successful quarters. Ambitious physical expansion, record profit results and further digital expansions all contributed to an exceptional year for the company, which was recognized as Retailer of the Year at the 35th annual FN Achievement Awards in November. .

Throughout the pandemic, Dick’s has benefited from an increase in sport and outdoor categories, driven by consumer interest in outdoor activities such as hiking. Like many large retailers, store closings have helped the company’s overall digital revenue rise to 30% of sales in 2020.

Earlier this year, Dick’s Sporting Goods opened the first locations for its new outdoor banner, dubbed Public Lands. The stores, which span approximately 50,000 to 60,000 square feet, include an expansive shoe section with footwear for hiking, running, the outdoor lifestyle and more. He also pioneered the House of Sport experiential concept – which includes a 17,000 square foot turf and running track, rock climbing wall, batting cage, golf racks and putting green – in order to ” help direct foot traffic to physical areas. stores.

During a call to investors in November, Dick’s CEO Lauren Hobart said the company plans to open more of these stores in 2022.

Despite the updated forecast, some analysts remained hesitant on Dick’s. Stifel, noting the positive news, gave the company a “Hold” rating.

“We remain cautious on the valuation, however, given the one-time stimulus payments and the related potential impact on demand for large items that have been important to Dick’s sales force during the pandemic,” wrote Stifel analyst Jim Duffy.

Cowen analyst John Kernan gave Dick’s an “outperformance” rating and noted “improved product allocations for Nike and Adidas”.

“Our conversations with the management teams at Nike, Adidas, Yeti, Callaway and Deckers (HOKA) have all been increasingly constructive regarding their relationship with Dick’s Sporting Goods, which we see as a sign that Dick’s is expanding further. beyond its peers in the sporting goods arena. Kernan said.

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