Dick’s Sporting Goods (NYSE: $DKS) released its Q2 earnings report on Wednesday, Setp0berm 4, just before markets opened. The sporting goods retailer reported better than forecast results and raised its full-year outlook.
Dick’s Sporting Goods Q2 Results
In the second quarter, the sporting goods retailer reported revenue of $3.47 billion, beating forecasts of $3.44 billion, its earnings came in at $4.37 per share, beating forecasts of $3.83 per share. Revenue was up 8% YoY from the $3.22 billion reported the same time last year, while comparable sales to 4.5%, beating estimates of a 3.6% increase.
Commenting on the results, Laren Hobart, the company’s CEO stated that comparable sales growth was driven by tickets, and transactions, signaling that foot traffic to the company’s store was rising and that customers were spending more.
Dick’s Sporting Goods Full Year Forecast
For the full year, Dick’s maintained its previous forecast of $13.1 billion to $13.2 billion in sales, just below analysts’ forecast of $13.24 billion. It raised its comparable sales forecast from 2% to 3% to 2.5% to 3.5% for the full year. At the high end, the forecast is bigger than analysts’ forecast of 3% growth in comparable sales.
Dick’s Sporting Goods Cyber Attack
In its most recent securities filing, the company revealed it had suffered a cyberattack, and some confidential data was stolen. The company stated it immediately activated a pre-prepared plan and engaged external exports to investigate and contain the incident. The company stated that the attack had not impacted its operations in any way.
In 2023, the company had stated that theft and aggressive markdowns of its stock would impact its full-year profitability. The revelation sent the stock falling 24%, with profits falling 23% at the end of last year. However, its latest guidance signals that it has gotten over those issues.
Other retailers had also reported issues with theft and damage in 2023, but they seem to have gotten over those issues now. One of the changes that they have implemented is a scale-down of self-checkout machines.
Stock Performance
DKS stock is up 58.99% in 2024, and up 107.18% in the past 12 months. Analysts remain upbeat about its future, giving it a moderate buy rating. They forecast a high of $270, and a low of $200 for the stock. Their average price target of $243.62 represents a 4.95% upside from the last closing price of $232.12.
Is Dick’s a Good Investment
Retailers have been bracing for the upcoming election in November, and its potential impact on spending. They are also focused on what actions the Federal Reserve will take regarding rate cuts, which could impede discretionary spending.
Dick’s Sporting Goods current guidance is not bullish. However, it is still promising, and as a long-term investment, it could potentially add value to your portfolio.
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