DICK’s Sporting Goods tops Q1 2022 earnings and revenue estimates

DICK’s Sporting Goods Inc. (NYSE: DKS) has announced its Q1 2022 financial results and issued full-year 2022 revenue and earnings guidance. It topped its earnings and revenue estimates but slashed its full-year guidance, citing changing macroeconomic conditions.

DICK’s Sporting Goods reports net sales of $2.7 billion

The company has net sales of $2.7 billion dropping 7.5% from last year when it had 2.918 billion. The Q1 2022 sales topped consensus estimates of $2.63 billion. Same-store sales were down 8.4%, beating analyst expectations of a drop of 11%.

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Net income during the quarter was $260.6 million or $2.47 per share, dropping 27.6% YoY from $361.8 million or $3.41 per share. Non-GAAP earnings per diluted share were $2.85, a drop of 24.8%  from $3.79 a year ago. CEO and President Lauren Hobart stated:

We are pleased with our first quarter results as our team continued to move with agility and execute well in a highly dynamic environment. Over the past two years, we have demonstrated our ability to adeptly manage through the pandemic and other challenges – and we are confident in our continued ability to adapt quickly and execute through uncertain macroeconomic conditions.

Same-store sales to drop between 8% and 2%

For the full, the company expects earnings of between $7.95 and $10.15 per diluted share based on around 103 million outstanding diluted shares, including at least $300 million of share buybacks. On a non-GAAP basis, the company is looking for earnings of $9.15 to $11.7 per diluted share minus the impact of expected stock settlement for Convertible Senior Notes and based on 88 million outstanding diluted shares. 

The company expects comp sales to decline between 8% and 2%. Gross capital expenditures are expected to be between $400 million and $425 million and on a net basis to be between $340 million and $3665 million.

The company also indicated that it exchanged $100 million in the total amount of senior convertible notes. Equally, Dick’s Sporting goods unwound a corresponding part of the convertible bind hedge plus warrants for shares and cash consideration. At the end of the quarter, the company has around $2.3 billion in cash plus cash equivalents.

Hobart added:

DICK’S has a unique and powerful position in the marketplace, and we remain confident in our strategies and our ability to deliver long-term sales and earnings growth.