Dick’s Sporting Goods Rallies Amid Guidance Cut
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.”
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.
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