DICK’S Sporting Goods Reports 0.5% Increase in Q3 Net Sales, Raises Full-Year Outlook

DICK’S Sporting Goods, Inc. reported a slight increase in net sales for the third quarter of fiscal 2024, reaching $3.06 billion, up 0.5% from $3.04 billion in the same period last year. The company attributed this growth to a 4.2% increase in comparable sales, adjusted for a calendar shift due to the 53rd week in fiscal 2023, which negatively impacted current quarter comparisons by approximately $105 million. The increase in comparable sales was driven by growth in footwear, athletic apparel, and team sports, although there were declines in outdoor-related categories. Net income for the quarter was $227.8 million, or $2.75 per diluted share, compared to $201.1 million, or $2.39 per diluted share, in the prior year.

For the first nine months of fiscal 2024, DICK’S reported net sales of $9.55 billion, a 4.8% increase from $9.11 billion in the same period last year. Comparable sales for this period also rose by 4.7%, reflecting a 3.7% increase in sales per transaction and a 1.0% increase in transaction volume. The company’s income from operations for the nine-month period increased to $1.09 billion from $910.3 million in the previous year, with gross profit rising to $3.46 billion, up from $3.20 billion.

DICK’S has continued to expand its store footprint, ending the quarter with 864 stores, including 727 DICK’S Sporting Goods locations and 137 specialty concept stores. The company opened two new DICK’S stores and three specialty concept stores during the third quarter. Additionally, DICK’S has been focusing on enhancing its merchandise assortment and customer experience through strategic investments in technology and marketing, which contributed to a 2.9% increase in selling, general, and administrative expenses for the quarter.

The company’s balance sheet remains strong, with cash and cash equivalents totaling $1.46 billion as of November 2, 2024. DICK’S has no outstanding borrowings under its $1.6 billion credit facility and plans to utilize its cash flow for capital expenditures, which are expected to reach approximately $800 million in fiscal 2024. This includes investments in new store developments, remodels, and technology enhancements. DICK’S also declared a quarterly cash dividend of $1.10 per share, payable on December 27, 2024.

Looking ahead, DICK’S has raised its full-year outlook for 2024, now expecting comparable sales growth in the range of 3.6% to 4.2% and earnings per diluted share between $13.65 and $13.95. The company remains optimistic about its strategic initiatives and operational strength, despite ongoing macroeconomic challenges such as inflation and elevated interest rates.