Dick's Sporting Goods (DKS) - Get Free Report on Tuesday reported third-quarter earnings and revenue that blew past analysts' forecasts and also raised its guidance for the fourth quarter amid stronger foot traffic and sales of its bigger-ticket items.
The sporting goods chain posted net income of $44.8 million, or 52 cents a share, vs. $37.8 million or 39 cents a share, in the comparable year-earlier period. Analysts polled by FactSet had been expecting earnings of 38 cents a share. Sales came in at $1.96 billion, above consensus forecasts of $1.91 billion.
Same-store sales jumped 6%, driven by increases in both average ticket and transactions, representing the company's strongest quarterly comparable sales gain since 2013.
"We saw increases in both average ticket and transactions, as well as growth across each of our three primary categories of hardlines, apparel and footwear," CEO Edward Stack said in a statement. "As we head into the holiday season, we remain very enthusiastic about our business, and we are pleased to increase our full year sales and earnings outlook for the third time this year."
Dick's raised its fiscal-year guidance to between $3.63 and $3.73 a share, and lifted its fiscal-year non-GAAP earnings per diluted share guidance to $3.50 to $3.60, both up from the previous range of $3.30 to $3.45.
Dick's in August announced that it was permanently retreating from its "hunt" category, which includes firearms sales. 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, Fla. 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.
In its press release Tuesday, the company said it was "continuing the strategic review of its hunt business."
Shares of Dick's jumped more than 11%, or $4.50 a share, to $43.93 in morning trading on Tuesday.