DICK'S Sporting Goods, a major US omnichannel retailer, has reported a significant increase in sales and earnings for the second quarter (Q2) of 2024.
The company posted net sales of $3.47bn, a 7.8% increase compared to the same period last year, with a notable boost from a calendar shift that contributed approximately $95m.
Earnings surge in Q2
Earnings per diluted share rose sharply to $4.37, a 55% jump from the $2.82 reported in Q2 of the previous year.
The company credited its improved performance to a combination of increased sales, a higher average transaction value, and strategic cost management, which resulted in an income before taxes of $482m - a 48% increase from last year’s $326m.
DICK'S also highlighted a growth in comparable sales, which increased by 4.5% compared to 2.0% in the prior year.
These gains were achieved through higher customer engagement, with both average ticket sizes and overall transactions contributing to the rise.
Full-year outlook revised upwards
In response to these positive results, DICK'S Sporting Goods has revised its full-year 2024 guidance.
The company now anticipates comparable sales growth between 2.5% and 3.5%, an increase from its previous estimate of 2.0% to 3.0%.
Additionally, the forecast for earnings per diluted share has been adjusted upwards to a range of $13.55 to $13.90, from the earlier guidance of $13.35 to $13.75.
These revisions reflect the company’s strong performance in the first half of the year and its confidence in sustained growth throughout the remainder of 2024.
Investment and capital expenditures
DICK'S also provided updates on its investment strategies, reporting $372m in gross capital expenditures for the first half of the year.
This represents a 50% increase compared to the same period last year.
Much of this capital is being directed towards expanding its store base, which now includes 861 locations, up from 860 in the same period last year.
The company continues to invest in its flagship stores, including the expansion of its 'House of Sport' concept, which it views as a key growth area moving forward.
Ultimately, DICK'S Sporting Goods' strong second-quarter results, driven by sales growth and improved profitability, have prompted the company to raise its outlook for the full year.
With higher sales expectations and increased earnings guidance, DICK'S anticipates continued success as it invests in its store portfolio and product offerings.
