U.S. Markets closed

Dick’s Sporting Goods Jumps Most Since 2018 on Boost in Forecast

John J. Edwards III

(Bloomberg) -- Dick’s Sporting Goods Inc. soared the most since May 2018 after raising its earnings guidance for the full year, on the back of second-quarter profit and sales that topped analysts’ estimates.

The athletic and outdoor retailer expects full-year earnings of $3.30 to $3.45 a share, higher than its previous projection of $3.20 to $3.40. Analysts were expecting $3.31.Second-quarter comparable-store sales rose 3.2%, well ahead of analysts’ estimate of 1.1% as compiled by Consensus Metrix.

Key Insights

The strong results and outlook show Dick’s isn’t suffering as it moves away from gun sales. The retailer began scaling back the category after the school shooting in Parkland, Florida, last year, and a strategic review of what it calls the hunt segment is continuing.E-commerce was a bright spot for the chain, with sales up 21% in the second quarter compared with the year-earlier period. E-commerce as a percentage of sales edged up to 12% from 11%.Dick’s said it is bucking any ill effects from President Donald Trump’s trade war with China so far, saying its guidance includes the impact of all previous tariffs and the new 10% levy coming soon on most remaining Chinese imports.

Market Reaction

Dick’s shares jumped as much as 11%, the most since May 30, 2018, to $36.49 in New York trading Thursday. They were up 5.7% this year through Wednesday, trailing the 17% gain of the S&P 500 Index.

Get More

See more details.Read the statement.

To contact the reporter on this story: John J. Edwards III in Boston at jedwardsiii1@bloomberg.net

To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Jonathan Roeder

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.