Dick’s Sporting Goods (NYSE: DKS) released yesterday its financial results for fiscal Q1 2022, highlighting quarterly revenue of US$2.70 billion. This is a decrease from Q4 2021’s US$3.35 billion and Q1 2021’s US$2.92 billion.
The quarterly financials also accompanied a guidance cut for fiscal year 2022 from the previously announced estimates last quarter. This is toplined by a drop in 2022 guidance for earnings per share at US$7.95 — US$10.15 from US$9.96 — US$11.13. The former guidance itself is a projected decline from 2021’s US$13.87 earnings per diluted share.
| March 2022 guidance | May 2022 guidance | |
| Earnings per diluted share | US$9.96 — US$11.13 | US$7.95 — US$10.15 |
| Earnings per diluted share (non-GAAP) | US$11.70 — US$13.10 | US$9.15 — US$11.70 |
| Store sales | Flat to -4% | -2% to -8% |
| Capital expenditures | US$400 — US$425 million on a gross basis US$340 — US$365 million on a net basis | US$400 — US$425 million on a gross basis US$340 — US$365 million on a net basis |
While the company offered no specific reason on its guidance cut, it said that the updated estimates “reflect the impact of evolving macroeconomic conditions.”
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Following the announcement, the company’s shares dropped by as much as 10.5% pre-market. However, the price rallied when the markets opened, surging as much as 23.5% from the low open.
Gross margin for the quarter dipped to 36.47% from 37.58% last quarter and 37.30% last year. Net income also dropped to US$260.6 million for the quarter from last quarter’s US$346.1 million and last year’s US$361.8 million. The quarterly bottomline translates to US$2.47 earnings per diluted share, and US$2.85 earnings per diluted share on a non-GAAP basis.
“We are pleased with our first quarter results as our team continued to move with agility and execute well in a highly dynamic environment,” said CEO Lauren Hobart. “Over the past two years, we have demonstrated our ability to adeptly manage through the pandemic and other challenges – and we are confident in our continued ability to adapt quickly and execute through uncertain macroeconomic conditions.”
The company also ended with a cash and cash equivalents balance of US$2.25 billion, putting the current assets balance at US$5.26 billion. Meanwhile, current liabilities ended at US$2.81 billion.
The sporting goods retailer also declared a US$0.4875 quarterly dividend per share payable on June 24 to stockholders on record by June 10.
Dick’s Sporting Goods last traded at US$78.14 on the NYSE.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
