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DICK'S Sporting (DKS) Q1 Earnings and Sales Beat Estimates
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DICK'S Sporting Goods, Inc. (DKS - Free Report) posted impressive first-quarter fiscal 2022 results, wherein both the top and the bottom line surpassed the Zacks Consensus Estimate. However, both metrics declined year over year. On a two-year basis, DKS witnessed growth, driven by strength in its core strategies.
Shares of DKS have declined 31.8% year to date, outperforming the industry’s 32.7% decrease.
Quarter in Detail
For the fiscal first quarter, adjusted earnings were $2.85 per share, down 25% from the prior-year figure of $3.79. This can be attributable to drab sales and dismal gross margins for the reported quarter. However, the figure surpassed the Zacks Consensus Estimate of $2.43 per share.
Net sales of $2,700 million declined 7.5% year over year but surpassed the Zacks Consensus Estimate of $2,634 million. However, net sales advanced 41% from the fourth-quarter fiscal 2019 reading on sales normalization in certain categories.
Consolidated same-store sales (comps) declined 8.4% from comps growth of 117.1%.
The gross margin contracted 83 basis points (bps) year over year to 36.5% for the quarter under review due to higher supply-chain-related costs and rising fixed occupancy costs, which were somewhat offset by improved merchandise margins. SG&A expenses of 22.8%, as a percentage of sales, contracted 195 bps year over year due to weak sales.
Image Source: Zacks Investment Research
Financial Aspects
This currently Zacks Rank #3 (Hold) player ended the reported quarter with cash and cash equivalents of $2,251.3 million, no borrowings under the $1.6-billion revolving credit facility and a total stockholders' equity of $2,194.6 million. Total inventory rose 40% year over year as of Apr 30, 2022.
In the reported quarter, total capital expenditure amounted to $73.8 million. DICK’S Sporting still projects capital expenditure of $400-$425 million on a gross basis for fiscal 2022.
DKS approved its quarterly dividend of 48.75 cents per share on common stock and Class B common stock, which is likely to be paid out on Jun 24 to its shareholders of record as of Jun 10. DICK’S Sporting paid out more than $46.1 million in the form of dividends and repurchased shares worth $42 million in the quarter. Going ahead, management intends to buy back at least $300 million of shares in fiscal 2022.
DICK'S Sporting Goods, Inc. Price, Consensus and EPS Surprise
Management slashed its fiscal 2022 view to reflect the ongoing macroeconomic environment, supply-chain conditions and the current geopolitical situation. DKS envisions adjusted earnings of $9.15-$11.70 for fiscal 2022, comparing unfavorably with the prior view of $11.70-$13.10. Also, comps are anticipated to decline 8-2%, down from the earlier guided view of a decline of 4% to flat. However, management expects sales to grow roughly 35% on a two-year basis.
Boot Barn, which provides western and work-related footwear, apparel and accessories, currently sports a Zacks Rank #1 (Strong Buy). BOOT has a trailing four-quarter earnings surprise of 25.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS suggests growth of 17% and 4.4%, respectively, from the corresponding year-ago period’s reported figures. BOOT has an expected EPS growth rate of 20% for three-five years.
Dillard’s operates as a departmental store chain featuring fashion apparel and home furnishings. DDS presently sports a Zacks Rank of 1. DDS has a trailing four-quarter earnings surprise of 224.1%, on average.
The Zacks Consensus Estimate for Dillard’s current financial-year sales suggests growth of 6.1%, while the same for EPS indicates a decline of 33.9% from the corresponding year-ago period’s reported numbers. DDS has an expected EPS growth rate of 12.6% for three-five years.
Kroger, which provides an array of goods ranging from household essentials, groceries and electronics to toys and apparel for men, women and kids, currently carries a Zacks Rank #2 (Buy). KR has a trailing four-quarter earnings surprise of 22.1%, on average.
The Zacks Consensus Estimate for Kroger’s current financial-year sales and EPS suggests growth of 3.2% and 4.1%, respectively, from the corresponding year-ago period’s reported figures. KR has an expected EPS growth rate of 9.9% for three-five years.
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DICK'S Sporting (DKS) Q1 Earnings and Sales Beat Estimates
DICK'S Sporting Goods, Inc. (DKS - Free Report) posted impressive first-quarter fiscal 2022 results, wherein both the top and the bottom line surpassed the Zacks Consensus Estimate. However, both metrics declined year over year. On a two-year basis, DKS witnessed growth, driven by strength in its core strategies.
Shares of DKS have declined 31.8% year to date, outperforming the industry’s 32.7% decrease.
Quarter in Detail
For the fiscal first quarter, adjusted earnings were $2.85 per share, down 25% from the prior-year figure of $3.79. This can be attributable to drab sales and dismal gross margins for the reported quarter. However, the figure surpassed the Zacks Consensus Estimate of $2.43 per share.
Net sales of $2,700 million declined 7.5% year over year but surpassed the Zacks Consensus Estimate of $2,634 million. However, net sales advanced 41% from the fourth-quarter fiscal 2019 reading on sales normalization in certain categories.
Consolidated same-store sales (comps) declined 8.4% from comps growth of 117.1%.
The gross margin contracted 83 basis points (bps) year over year to 36.5% for the quarter under review due to higher supply-chain-related costs and rising fixed occupancy costs, which were somewhat offset by improved merchandise margins. SG&A expenses of 22.8%, as a percentage of sales, contracted 195 bps year over year due to weak sales.
Image Source: Zacks Investment Research
Financial Aspects
This currently Zacks Rank #3 (Hold) player ended the reported quarter with cash and cash equivalents of $2,251.3 million, no borrowings under the $1.6-billion revolving credit facility and a total stockholders' equity of $2,194.6 million. Total inventory rose 40% year over year as of Apr 30, 2022.
In the reported quarter, total capital expenditure amounted to $73.8 million. DICK’S Sporting still projects capital expenditure of $400-$425 million on a gross basis for fiscal 2022.
DKS approved its quarterly dividend of 48.75 cents per share on common stock and Class B common stock, which is likely to be paid out on Jun 24 to its shareholders of record as of Jun 10. DICK’S Sporting paid out more than $46.1 million in the form of dividends and repurchased shares worth $42 million in the quarter. Going ahead, management intends to buy back at least $300 million of shares in fiscal 2022.
DICK'S Sporting Goods, Inc. Price, Consensus and EPS Surprise
DICK'S Sporting Goods, Inc. price-consensus-eps-surprise-chart | DICK'S Sporting Goods, Inc. Quote
Guidance
Management slashed its fiscal 2022 view to reflect the ongoing macroeconomic environment, supply-chain conditions and the current geopolitical situation. DKS envisions adjusted earnings of $9.15-$11.70 for fiscal 2022, comparing unfavorably with the prior view of $11.70-$13.10. Also, comps are anticipated to decline 8-2%, down from the earlier guided view of a decline of 4% to flat. However, management expects sales to grow roughly 35% on a two-year basis.
Stocks to Consider
Here are three better-ranked stocks to consider, namely Boot Barn Holdings (BOOT - Free Report) , Dillard’s (DDS - Free Report) and Kroger (KR - Free Report) .
Boot Barn, which provides western and work-related footwear, apparel and accessories, currently sports a Zacks Rank #1 (Strong Buy). BOOT has a trailing four-quarter earnings surprise of 25.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS suggests growth of 17% and 4.4%, respectively, from the corresponding year-ago period’s reported figures. BOOT has an expected EPS growth rate of 20% for three-five years.
Dillard’s operates as a departmental store chain featuring fashion apparel and home furnishings. DDS presently sports a Zacks Rank of 1. DDS has a trailing four-quarter earnings surprise of 224.1%, on average.
The Zacks Consensus Estimate for Dillard’s current financial-year sales suggests growth of 6.1%, while the same for EPS indicates a decline of 33.9% from the corresponding year-ago period’s reported numbers. DDS has an expected EPS growth rate of 12.6% for three-five years.
Kroger, which provides an array of goods ranging from household essentials, groceries and electronics to toys and apparel for men, women and kids, currently carries a Zacks Rank #2 (Buy). KR has a trailing four-quarter earnings surprise of 22.1%, on average.
The Zacks Consensus Estimate for Kroger’s current financial-year sales and EPS suggests growth of 3.2% and 4.1%, respectively, from the corresponding year-ago period’s reported figures. KR has an expected EPS growth rate of 9.9% for three-five years.