DKS

Dick's Sporting Goods Reports 6.2% Increase in First-Quarter Net Sales

Dick's Sporting Goods, Inc. has reported its first-quarter results, showing a 6.2% increase in net sales, reaching $3.02 billion compared to the prior year. The company also achieved a 5.3% growth in comparable sales. Earnings per diluted share were reported at $3.30, with a 4% increase in earnings before income taxes (EBT).

The company's income before income taxes represented 11.3% of net sales, slightly lower than the 11.6% from the prior year. The effective tax rate also saw a significant increase, rising from 7.2% in the prior year to 19.6% in the current period. Net income was reported at $275 million, a 10% decrease from the previous year.

In terms of the balance sheet, cash and cash equivalents remained relatively stable, increasing by $6 million to $1.649 billion. However, inventories saw a more significant increase, rising by 6% to $3.201 billion. Total debt remained unchanged at $1.483 billion.

The company's capital allocation activities during the quarter also showed noteworthy changes. Share repurchases surged by 97% to $114 million, while dividends paid decreased by 10% to $94 million. Gross capital expenditures rose by 86% to $158 million, leading to a corresponding 107% increase in net capital expenditures to $126 million.

Looking ahead, Dick's Sporting Goods raised its full-year 2024 guidance for comparable sales growth to a range of 2.0% to 3.0%, up from the previous range of 1.0% to 2.0%. Similarly, the company increased its full-year 2024 earnings per diluted share guidance to a range of $13.35 to $13.75, up from $12.85 to $13.25 previously.

The company also provided an outlook for net sales, expecting them to reach $13.1 billion to $13.2 billion for the full year 2024. Additionally, Dick's Sporting Goods anticipates capital expenditures of approximately $900 million on a gross basis and $800 million on a net basis.

In terms of store count and square footage, the company reported a decrease in the number of stores from 863 to 857. However, it noted an increase in square footage from 42.7 million to 42.9 million, reflecting the opening of new stores and relocations.

The market has reacted to these announcements by moving the company's shares 2.6% to a price of $195.0. Check out the company's full 8-K submission here.

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