We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DICK'S Sporting Goods, Inc. (DKS - Free Report) posted better-than-expected third-quarter fiscal 2020 results, wherein both top and bottom lines improved year over year. Results gained from favorable customer demand, a solid product portfolio and strength in the online platform. Going forward, the company noted that this strong momentum continued in the fourth quarter, which was somewhat hurt by adverse weather.
Q3 in Detail
In the fiscal first quarter, DICK'S Sporting reported adjusted earnings of $2.01 per share, up more than three-fold from 52 cents in the prior-year quarter. The figure also surpassed the Zacks Consensus Estimate of 94 cents per share.
Net sales of $2,412.1 million rose 22.9% year over year and exceeded the Zacks Consensus Estimate of $2,254 million. This uptick can be attributable to improved store sales and a robust online show. Notably, consolidated same-store sales (comps) grew 23.2% with e-commerce sales surging 95% year over year. E-commerce was nearly 21% of net sales in the reported quarter compared with 13% in the prior-year quarter. Till the first three weeks of the aforementioned quarter, consolidated comps grew in high teens.
Gross margin expanded roughly 532 basis points (bps) to 34.9% in the quarter under review. Meanwhile, SG&A expenses, as a percentage of sales, contracted 127 bps year over year to 23.8% due to sturdy sales growth. This is inclusive of $48 million of extra compensation and safety expenses associated with COVID-19.
DICKS Sporting Goods, Inc. Price, Consensus and EPS Surprise
DICK'S Sporting ended fiscal 2020 with cash and cash equivalents of $1,060 million, no borrowings under its $1.9-billion revolving credit facility and total stockholders' equity of $2,121.6 million. Further, total inventory declined 9.8% year over year as of Oct 31, 2020. In the nine months ending Oct 31, 2020, total capital expenditure amounted to $156.4 million.
Dividend Payments and Share Repurchases
Although the company did not repurchase any shares in the reported quarter, it has resumed its dividend program. It approved a dividend of 31.25 cents per share on its Common Stock and Class B Common Stock, which is payable on Dec 29 as of shareholders record on Dec 11.
The TJX Companies (TJX - Free Report) has a long-term earnings growth rate of 10.5% and a Zacks Rank #2 (Buy).
Target Corp. (TGT - Free Report) has an expected long-term earnings growth rate of 7.2% and a Zacks Rank #2.
The Kroger Co. (KR - Free Report) has an impressive long-term earnings growth rate of 6.2% and a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts saycould impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
DICK'S Sporting's (DKS) Q3 Earnings & Sales Surpass Estimates
DICK'S Sporting Goods, Inc. (DKS - Free Report) posted better-than-expected third-quarter fiscal 2020 results, wherein both top and bottom lines improved year over year. Results gained from favorable customer demand, a solid product portfolio and strength in the online platform. Going forward, the company noted that this strong momentum continued in the fourth quarter, which was somewhat hurt by adverse weather.
Q3 in Detail
In the fiscal first quarter, DICK'S Sporting reported adjusted earnings of $2.01 per share, up more than three-fold from 52 cents in the prior-year quarter. The figure also surpassed the Zacks Consensus Estimate of 94 cents per share.
Net sales of $2,412.1 million rose 22.9% year over year and exceeded the Zacks Consensus Estimate of $2,254 million. This uptick can be attributable to improved store sales and a robust online show. Notably, consolidated same-store sales (comps) grew 23.2% with e-commerce sales surging 95% year over year. E-commerce was nearly 21% of net sales in the reported quarter compared with 13% in the prior-year quarter. Till the first three weeks of the aforementioned quarter, consolidated comps grew in high teens.
Gross margin expanded roughly 532 basis points (bps) to 34.9% in the quarter under review. Meanwhile, SG&A expenses, as a percentage of sales, contracted 127 bps year over year to 23.8% due to sturdy sales growth. This is inclusive of $48 million of extra compensation and safety expenses associated with COVID-19.
DICKS Sporting Goods, Inc. Price, Consensus and EPS Surprise
DICKS Sporting Goods, Inc. price-consensus-eps-surprise-chart | DICKS Sporting Goods, Inc. Quote
Financial Aspects
DICK'S Sporting ended fiscal 2020 with cash and cash equivalents of $1,060 million, no borrowings under its $1.9-billion revolving credit facility and total stockholders' equity of $2,121.6 million. Further, total inventory declined 9.8% year over year as of Oct 31, 2020. In the nine months ending Oct 31, 2020, total capital expenditure amounted to $156.4 million.
Dividend Payments and Share Repurchases
Although the company did not repurchase any shares in the reported quarter, it has resumed its dividend program. It approved a dividend of 31.25 cents per share on its Common Stock and Class B Common Stock, which is payable on Dec 29 as of shareholders record on Dec 11.
Price Performance
We note that shares of this Zacks Rank #3 (Hold) stock have gained 26% in the past three months, outperforming the industry’s 4.5% growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Stocks to Watch in the Retail Space
The TJX Companies (TJX - Free Report) has a long-term earnings growth rate of 10.5% and a Zacks Rank #2 (Buy).
Target Corp. (TGT - Free Report) has an expected long-term earnings growth rate of 7.2% and a Zacks Rank #2.
The Kroger Co. (KR - Free Report) has an impressive long-term earnings growth rate of 6.2% and a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts saycould impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>