Dick's Sporting Goods (DKS) earnings Q1 2024

A shopping cart sits outside a Dick's Sporting Goods store on August 26, 2020 in Daly City, California.

Justin Sullivan | Getty Images News | Getty Images

Dick's sporting goods Wednesday said customers are spending more on new sneakers and sporting goods, prompting the retailer to raise its full-year profit forecast.

Shares rose about 7% in premarket trading.

The major sporting goods retailer's comparable sales grew 5.3% during its first fiscal quarter, well above the 2.4% that analysts expected, according to StreetAccount.

The company said the growth was driven by more transactions, which means more customers are shopping at Dick's, and higher average ticket values, which shows shoppers are also spending more.

Here's how Dick's did in the first fiscal quarter, compared to what Wall Street expected, based on a survey of analysts by LSEG:

  • Profit per share: $3.30 vs. $2.95 expected
  • Gain: $3.02 billion versus $2.94 billion expected

The company's reported net income for the three-month period ended May 4 was $275 million, or $3.30 per share, compared to $305 million, or $3.40 per share, a year earlier.

Revenue rose to $3.02 billion, up about 6% from $2.84 billion a year earlier.

The strong quarter prompted Dick's to raise expectations for the full year.

The retailer now expects earnings per share to be between $13.35 and $13.75, compared to the previous range of $12.85 to $13.25. According to LSEG, that is higher than the $13.25 that analysts had expected.

CEO Lauren Hobart said she expects “strong demand from athletes” in the coming quarters, underscoring the company's prospects. Still, sales expectations fall somewhat flat following the retailer's first-quarter sales decline.

Dick's now expects comparable sales to rise between 2% and 3%, compared to previous expectations of a 1% to 2% increase. The lower end of that range only matches the 2% growth that analysts expected, according to StreetAccount.

Dick's expects full-year sales of between $13.1 billion and $13.2 billion, which is also in line with estimates of $13.16 billion, according to LSEG.

A shock to shoes and clothes

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