DICK’S Sporting Goods Inc (NYSE:DKS) stock fell 2.84% (As on September 5, 11:18:40 AM UTC-4, Source: Google Finance) after the company reported a strong second quarter with earnings, sales and comps that topped Wall Street estimates amid growth in transactions and average ticket. Dick’s net income rose to $362 million, up from $244 million, in the year-ago period. Comparable sales increased 4.5% y/y, on top of the 2.0 percent y/y comp store sales growth in the year-ago Q2 period. Q2 comps were driven by growth in average ticket and transactions, and with growth in sales, gross margin expansion and SG&A leverage, the company delivered an EBT margin of nearly 14 percent. Gross margin was 36.7 percent of sales in the second quarter, a 231 basis point increase compared to the 34.4 percent margin in the year-ago Q2 period. Selling, general and administrative expenses were $796.7 million, or 22.9 percent of sales, in the quarter, compared to $764.8 million, or 23.7 percent of sales, in the year-ago quarter. Operating margin was 13.5 percent of sales in Q2, compared to 9.7 percent in the same quarter last year. Through the first half of 2024, Dick’s opened three Dick’s Sporting Goods stores and closed two, bringing the total to 724. Dick’s also opened eight new specialty concept stores, which include Public Lands, Golf Galaxy, and Going Going Gone, and closed three, bringing the total to 136.
DKS in the second quarter of FY 24 has reported the adjusted earnings per share of $4.37, beating the analysts’ estimates for the adjusted earnings per share of $3.86. The company had reported the adjusted revenue growth of 7.8 percent to $3.47 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue of $3.44 billion.
Additionally, the company has declared a quarterly dividend in the amount of $1.10 per share on the Company’s common stock and Class B common stock. The dividend is payable in cash on October 4, 2024 to stockholders of record at the close of business on September 20, 2024.
For the full year, Dick’s now expects earnings of $13.55 to $13.90 a share, up from its previous guidance of $13.35 to $13.75 a share. It maintained its sales guidance of $13.1 billion to $13.2 billion, but raised its growth outlook for comparable sales for growth between 2.5% and 3.5%, up from previous guidance of 2% to 3%.