DICK'S Sporting Goods Q1 Profit Tops View, Lifts FY Outlook

(RTTNews) - sporting goods retailer DICK'S Sporting Goods Inc. (DKS) reported net income for the first quarter ended May 1, 2021 of $361.8 million or $3.41 per share, compared to a net loss of $143.4 million or $1.71 per share in the first quarter ended May 2, 2020. Analysts polled by Thomson Reuters expected the company to report earnings of $1.12 per share for the first-quarter. Analysts' estimates typically exclude special items.

The company incurred approximately $13 million of pre-tax incremental safety costs in response to COVID-19 during the 13 weeks ended May 1, 2021. During last year's quarter, the Company incurred approximately $62 million of pre-tax expenses in response to COVID-19.

On a non-GAAP basis, net income for the quarter was $367.2 million or $3.79 per share, compared to $58.4 million or $0.62 per share in the prior year.

Net sales for the first quarter of 2021 were $2.92 billion, an increase of 119% from last year, driven by a 115% increase in consolidated same store sales, which included an increase in eCommerce sales of 14%. eCommerce sales increased 110% in last year's first quarter and eCommerce penetration has grown from 13% of total net sales in the first quarter of 2019 to 20% for the first quarter of 2021. Analysts expected revenues of $2.18 billion for the first-quarter.

First quarter 2020 consolidated same store sales decreased 29.5%, driven by temporary store closures that started on March 18th, 2020 to help prevent the spread of COVID-19. First quarter 2019 consolidated same store sales were flat.

The company expects to open six new DICK'S Sporting Goods stores and eight specialty concept stores in 2021, including the conversion of two former Field & Stream stores into Public Lands stores. The company also expects to relocate 11 DICK'S Sporting Goods stores in 2021.

The company plans to repurchase a minimum of $200 million of its common shares in 2021.

The company raised its full year 2021 outlook.

Looking ahead for fiscal year 2021, the company now expects earnings per share to be in the range of $7.05 - $7.68, non-GAAP earnings per share of $8.00 - $8.70 and net sales of $10.515 billion - $10.806 billion. Previously, the company expected annual earnings per share to be in a range of $3.81 - $4.55, adjusted earnings per share of $4.40 - $5.20 per share and net sales of $9.544 billion - $9.935 billion. Wall Street currently is looking for fiscal year 2021 earnings of $5.32 per share on annual revenues of $9.81 billion.

In Wednesday pre-market trading, DKS was trading at $89.26 up $5.09 or 6.05 percent.