Dick’s Sporting Goods, Inc. Earnings Cheat Sheet: Margins Expand Again, Profit Rises

Dick’s Sporting Goods, Inc. (NYSE:DKS) reported its results for the second quarter. Dick’s Sporting Goods, Inc. is an authentic full-line sporting goods retailer offering a assortment of brand name sporting goods equipment, apparel, and footwear in a specialty store environment.

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Dick’s Sporting Goods Earnings Cheat Sheet for the Second Quarter

Results: Net income for Dick’s Sporting Goods, Inc. rose to $73.8 million (59 cents per share) vs. $51.5 million (43 cents per share) in the same quarter a year earlier. This marks a rise of 43.3% from the year earlier quarter.

Revenue: Rose 6.6% to $1.31 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: DKS reported adjusted net income of 52 cents per share. By that measure, the company beat the mean estimate of 50 cents per share. Analysts were expecting revenue of $1.33 billion.

Quoting Management: “In the second quarter, we delivered profitable growth that exceeded our earnings projections while continuing to strengthen our balance sheet. While top line sales started slow in the quarter, June and July comps accelerated at a pace above our quarterly target of approximately 3%,” said Edward W. Stack, Chairman and CEO. “We also made marked progress in developing all of our growth drivers by adding productive, profitable stores; building our e-commerce business; and expanding our overall margin rates. As a result, we are well positioned to continue to meaningfully grow our business.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.3 percentage points to 30.7% from the year earlier quarter. Over that span, margins have grown on average 1.6 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 43.1% and in the fourth quarter of the last fiscal year, the figure rose 29.9%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the first quarter, by 4 cents in the fourth quarter of the last fiscal year, and by 5 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 6.3% to $1.11 billion in the first quarter. The figure rose 13.6% in the fourth quarter of the last fiscal year from the year earlier and climbed 9% in the third quarter of the last fiscal year from the year-ago quarter.

Competitors to Watch: Big five Sporting Goods Corp. (NASDAQ:BGFV), Golfsmith Intl. Hldgs., Inc. (NASDAQ:GOLF), Hibbett Sports, Inc. (NASDAQ:HIBB), Cabela’s Incorporated (NYSE:CAB), Sport Chalet, Inc. (NASDAQ:SPCHA), Dover Saddlery, Inc. (NASDAQ:DOVR), Winmark Corporation (NASDAQ:WINA), Deckers Outdoors (NASDAQ:DECK), Nike (NYSE:NKE), The Timberland Company (NYSE:TBL),  and Sports Direct Intl. Plc (NYSE:SPD).

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(Source: Xignite Financials)