Dick’s Sporting Goods has defied expectations and reported stronger-than-expected third-quarter earnings, bucking the downturn in the sports apparel and footwear market. The company’s net sales increased by 2.8% to $3.04 billion, while adjusted earnings per share rose by 10% to $2.85. These numbers were higher than what analysts had predicted, reversing a trend from August when Dick’s missed Wall Street expectations for the first time in three years.
Dick’s Sporting Goods also raised its full-year 2023 outlook for comparable store sales and earnings, despite revenue declines or missed expectations from other major players in the industry like Nike, Under Armour, Adidas, and Puma during the third quarter earnings season. The company’s CEO, Lauren Hobart, expressed optimism about the future, saying “Our consumer is not trading down [to lower-quality merchandise], and our consumers have actually held up very, very well.”
The strong earnings report led to a nearly 7% increase in early trading of Dick’s stock on the New York Stock Exchange. Although the stock is still working to recover from a 24% drop in August, this positive news has put Dick’s Sporting Goods in a good position heading into the critical holiday shopping season. Hobart said “We are very excited about what we have within our control for Q4. Our [store] teams are pumped to deliver an amazing holiday experience, but we’re balancing that with caution about the macroeconomic environment because we know consumers are going through a lot right now.”