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2022-05-26 14:26

Dick's Sporting Goods, Inc. stock ended the regular session up 10% on Wednesday after the company reported its financial results for the first quarter of 2022.

Dick's Sporting Goods, located in Coraopolis, Pennsylvania, is an American sporting goods retailer. Richard Dick Stack founded the company in 1948, and it now has roughly 854 outlets and 50,100 employees. Dick's is the largest athletic goods retailer in the United States, and it is a Fortune 500 company.

Prominent figures in the earnings report

For the fiscal first quarter 2022, the comparable store sales decreased by 8.4%. The net sales of the company in the quarter rose by 41% to $2.7 billion compared to the fiscal first quarter of 2019. Over the last ten years, the company has consistently increased revenue and net profit, and it has a dedicated customer base. Over 70% of revenues were produced by Dick's scorecard members during the quarter.

In the first quarter of fiscal 2022, the company generated a net income of $260.6 million compared to $361.8 million in the first quarter of fiscal 2021, a decrease of 28%. The company’s income before income taxes in the first quarter of fiscal 2022 was 12.29% compared to 16.10% in the first quarter of fiscal 2021.

The non-GAAP net income was $260.6 million for the fiscal first quarter of 2022 whereas in the previous year’s first quarter the non-GAAP net income was $367.2 million.

In the first quarter of fiscal 2022, pre-tax income as a proportion of net sales was 12.3%, resulting in earnings per diluted share of $2.47 compared to $3.41 in the first quarter of fiscal 2021. However, the non-GAAP earnings per diluted share was $2.85 relative to $3.79 for the same period of previous year.

What Dick’s Sporting Goods expects for the future

The company has provided its financial forecast for the full year 2022. The Comparable store sales are expected to be down between 8% and 2% year over year, according to management's full-year forecast. The adjusted earnings range is estimated to be $9.15 to $11.70. The stock is still valued at an attractive eight times earnings.

The $6.38 billion company that trades at a PE multiple of 5.63 is still down more than 30% versus the start of the year 2022. Dick’s Sporting Goods had $2.3 billion in cash and cash equivalents at the end of the first quarter.

The board declared 48.75 cents a share of quarterly dividend.