(Bloomberg) -- Dick’s Sporting Goods Inc. raised its full-year sales outlook after posting strong results in the back-to-school season ahead of the holidays, spurred by high demand for sports gear.
The retailer now expects net sales to reach as much as $13.3 billion this fiscal year, with comparable store sales, a key retail metric, rising between 3.6% and 4.2%. It sees earnings per diluted share at a range of $13.65 to $13.95.
Chief Executive Officer Lauren Hobart said Dick’s had an “excellent back-to-school season” and increased market share. Comparable store sales jumped 4.2% for the quarter ended Nov. 2, much higher than the 2.5% rise analysts had predicted.
“We saw tremendous gain in the back-to-school categories this past quarter,” Hobart said on a conference call with investors and analysts. “So footwear, apparel, team sports — but also prioritizing outdoor living, golf, really all of the athletic categories and just being outside.”
The company’s shares were little changed at 9:55 a.m. in New York. The stock had been up 46% this year through Monday’s close.
As the crucial holiday season ramps up, Dick’s executives said they’re being “appropriately cautious,” due to an uncertain economic environment and fewer prime shopping days between Black Friday and Christmas. They expect shoppers to start early and accelerate their gift-buying.
Demand for the sporting goods that Dick’s sells appears stronger than last year and could retain momentum into the holidays, Bloomberg Intelligence analyst Lindsay Dutch said in a note to clients. That strength would aid profitability with more full-price sales.
“High demand should also allow Dick’s to keep holiday promotions limited,” said Dutch.
Dick’s has been transforming its store network through renovations and relocations, boosting spending on both physical shops and online operations in an effort to attract more shoppers.
Hobart is aggressively expanding her House of Sport concept — stores outfitted with amenities such as climbing walls and batting cages — and is on track to reach as many as 100 of these locations by 2027. She’s also expanding the company’s Field House concept, which fits some of those experiential elements into a smaller space, and expects to open 20 new ones next year.
(Updates shares in fifth paragraph.)
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