Dick's Sporting Goods' stock rallies in premarket after it boosts its 2023 profit outlook

By Steve Gelsi

Dick's cites strong back-to-school performance and market-share gains

Dick's Sporting Goods Inc.'s stock was up nearly 9% in premarket trading on Tuesday after the retailer beat Wall Street's third-quarter profit estimate and raised its outlook for 2023.

The company said it had a "very strong" back-to-school season and that it's excited about holiday shopping.

Dick's (DKS) also said it also gained market share, with third-quarter comparable store sales driven by increases in transactions and average tickets.

The retailer said its third-quarter net income fell to $201.1 million, or $2.39 a share, from $228.46 million, or $2.45 a share, in the year-ago quarter.

The company's adjusted earnings of $2.85 a share beat the FactSet consensus estimate of $2.45 a share.

Third-quarter revenue rose to $3.04 billion from $2.96 billion in the year-ago period and beat the analyst estimate of $2.94 billion.

Looking ahead, Dick's lifted its adjusted 2023 profit outlook to $12 to $12.60 a share, ahead of the analyst estimate of $11.78 a share.

Prior to Tuesday's trades, Dick's Sports Goods shares were down 1.06% in 2023, compared to an 18.4% gain by the S&P 500 SPX.

-Steve Gelsi

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11-21-23 0809ET

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