US retailer Dick's Sporting Goods delivers 3.6% net sales growth in Q2

25 Aug '23

3 min read

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Insights

Dick's Sporting Goods has reported 3.6 per cent net sales growth and 1.8 per cent comparable store sales growth in Q2 FY23, driven by transaction increases and market share gains.
Earnings per diluted share were $2.82 compared to $3.25 in the previous year.
The company opened seven new locations and reaffirmed its 2023 comparable store sales outlook.

Dick's Sporting Goods, one of the leading sporting goods retailers, has delivered 3.6 per cent net sales growth and 1.8 per cent growth in comparable store sales in the second quarter (Q2) of fiscal 2023 (FY23), driven by a 2.8 per cent increase in transactions and continued market share gains. The company reported earnings per diluted share of $2.82 compared to $3.25, or $3.68 on a non-Gaap basis, during the prior year quarter.

The company opened seven new Dick’s House of Sport locations during the second quarter. It reaffirms 2023 comparable store sales outlook in the range of flat to positive 2 per cent. It revised full year 2023 earnings per diluted share outlook to reflect second quarter results and gross margin expectations for the second half of the year. Further, it also announced business optimisation to better align talent, organisational design and spending to support growth opportunities and streamline cost structure.

“As part of our review, we eliminated certain positions primarily at our customer support centre on August 21, 2023 for which we expect to incur approximately $20 million of severance expenses in the third quarter of 2023. Related cost savings are expected to be largely offset by strategic talent investments over the next twelve months. While the company has not committed to specific additional actions at this time, it currently expects the business optimization to be completed during fiscal 2023 and may result in additional one-time charges of $25 million to $50 million,” the company said in a press release.

“We are extremely excited about the future of our business. Our newest Dick’s concepts, Dick’s House of Sport and our next generation 50,000 square foot Dick’s store, are yielding powerful results. We haven't seen growth opportunities like these since we went public in the early 2000s,” said Ed Stack, executive chairman.

"We are pleased with our strong sales performance for the second quarter led by robust transaction growth and continued market share gains. Within the quarter, sales accelerated significantly in July, and we remain confident in delivering positive comp sales for 2023. While we posted another double-digit EBT margin, our Q2 profitability was short of our expectations due in large part to the impact of elevated inventory shrink, an increasingly serious issue impacting many retailers. Despite moderating our 2023 EPS outlook, the enthusiasm we have for our business and the confidence we have in our long-term growth opportunities have never been stronger,” said Lauren Hobart, president and chief executive officer.

Fibre2Fashion News Desk (RR)

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