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Dick’s Sporting Gains Most Since May 2018 on Increased Outlook

Dick’s Sporting Goods Surges After Boosting Full-Year Outlook

(Bloomberg) -- Dick’s Sporting Goods Inc. shares jumped the most since May 2018 after the athletic and leisure retailer raised its full-year earnings expectations for the third time this year, along with reporting quarterly results that topped analysts’ estimates.

  • The company expects adjusted full-year earnings of $3.50 to $3.60 a share, excluding some items. It had forecast $3.30 to $3.45 a share in August. Third-quarter earnings of 52 cents a share outpaced analysts’ expectation of 38 cents.
  • See more details.

Key Insights

  • Dick’s is showing no ill effects from its retreat from gun sales. The company remains in a strategic review of its hunting business as it continues to lobby for stricter gun laws. Earlier this year, Dick’s said it was removing hunting gear and guns from about 125 stores nationwide, about 17% of the chain. In October, the company also sold off eight of its Field & Stream stores, a brand more specifically aimed at hunting and fishing.
  • The company may benefit from Nike Inc.’s decision to stop selling directly on Amazon. Nike is drastically reducing its total number of retail partners and deepening its relationship with a few, including Dick’s.
Dick’s Sporting Gains Most Since May 2018 on Increased Outlook

Market Reaction

  • Dick’s shares rose as much as 17% to $46.15, the highest intraday level since May 2017, in New York trading. The stock was up 26% this year through Monday.
  • Ahead of the earnings report, Dick’s had attracted a large number of short sellers, who borrow shares in hopes of profiting from their decline. Nearly 28% of the company’s float was shorted based on recent data, Bloomberg News reported Monday.

Get More

  • Read the statement.
  • See analysts’ estimates.

To contact the reporter on this story: Eben Novy-Williams in New York at enovywilliam@bloomberg.net

To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, John J. Edwards III

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