Shares of Dick's Sporting Goods (DKS - Get Report) rose Thursday after the retailer reported fiscal second-quarter sales that beat analysts' forecasts - another sign that the U.S. consumer remains alive and well despite signs of slowing economic growth.
The Pittsburgh-based retail chain posted net income of $112.5 million, or $1.26 a share, vs. $119.4 million, or $1.20 a share, in the comparable year-earlier period. Analysts polled by FactSet had been expecting earnings of $1.22 a share. Sales were $2.26 billion, above consensus forecasts of $2.2 billion. Consolidated same-store sales increased 3.2%.
The company also raised its full-year guidance, saying it now expects earnings of between $3.30 and $3.45 a share, up from its previous guidance range of between $3.20 and $3.40 a share.
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"Our key strategies and investments are working, our major headwinds are behind us and we've bent the curve on sales," CEO Edward Stack said in a statement. "We are very enthusiastic about our business and are pleased to increase our full year sales and earnings outlook."
The results follow on the heels of other large retailers including Walmart (WMT - Get Report) , Kohl's (KSS - Get Report) , Target (TGT - Get Report) , Home Depot (HD - Get Report) and Lowe's (LOW - Get Report) which all reported stronger-than-expected earnings and provided positive outlooks for the remainder of the year.
Shares of Dick's were up 4.03% to $34.30 in trading Thursday.
Beyond the numbers, Dick's deferred its anticipated retreat from its "hunt" category, which includes firearms sales, noting it is "... continuing the strategic review of its hunt business, including Field & Stream."
The company announced temporary changes to its firearm sales policies in the wake of the deadly shooting at Marjorie Stoneman Douglas High School in Parkland, Florida in February 2018.
Dick's no longer sells assault-style rifles in its stores. It has also raised the age restriction for purchases of firearms and ammunition to 21, as well as taken down items that resemble assault-style rifles, including nonlethal airsoft guns and toys.
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