Shares of DICK'S Sporting Goods, Inc. (DKS - Free Report) gained 25.8% yesterday, after the company reported impressive results in first-quarter fiscal 2018. Both top and bottom line outpaced estimates and improved year over year. In fact, this marked the third straight positive earnings surprise. As a result, management raised its earnings outlook for fiscal 2018.
A look at this Zacks Rank #3 (Hold) company’s price performance shows that it has outperformed the industry it belongs to. The stock has rallied 19.1% in the last three months compared with the industry’s increase of 3.7%.
In the fiscal first quarter, DICK’S Sporting reported earnings of 59 cents per share, which outpaced the Zacks Consensus Estimate of 42 cents. The bottom-line figure also grew 9.3% from the year-ago quarter.
Net sales came in at $1,909.7 million, which exceeded the Zacks Consensus Estimate of $1,891 million and increased 4.6% from the prior-year quarter. Adjusting for the calendar shift owing to the 53rd week last year, consolidated comps fell 2.5%. Further, excluding this adjustment, consolidated comps dipped 0.9% in the quarter. However, consolidated comps were up 2.4% in the year-ago quarter.
Quarterly comps were hurt by decline of 3.7% in transactions due to cold spring weather in comparison to last year. This unfavorable weather led to a delayed start in key outdoor sports and activities. The decline was somewhat offset by a 1.2% rise in average ticket.
During the reported quarter, Fitness Equipment and Team Sports businesses were the best performers followed by positive comps in license sales owing to the Eagles Super Bowl win. Also, the company’s private brands reported double-digit comps growth, backed by robust sales growth from CALIA, Field & Stream and adidas (ADDYY - Free Report) , Team Sports and new brands. In addition, DICK’S Sporting cold weather businesses that include outdoor apparel and boots witnessed robust growth. However, sales declined at the hunting and electronics categories. These were all on a shifted basis.
Furthermore, solid e-commerce growth of 24% year over year, after adjusting the calendar shift due to the 53rd week in fiscal 2017, contributed to the fiscal first-quarter results. Notably, e-commerce penetration improved to about 11% of net sales compared with 9% in the prior-year quarter.