Dick’s Sporting Goods, Inc. (NYSE: DKS) on Wednesday reported first quarter earnings that beat analysts’ estimates and raised its full year guidance, sending its shares up more than 23 percent.
The retailer said net sales rose 4.6 percent to $1.91 billion in the quarter ended May 5, topping analysts’ estimates of $1.88 billion, according to Thomson Reuters.
First quarter net income was $60.09 million, or 59 cents per share, compared to $58.2 million, or $0.52 per diluted share a year earlier. Analysts’ polled by Thomson Reuters had estimated earnings of 45 cents per share.
The better-than-expected financial results came after the company stopped selling all assault-style rifles in its stores in February. Investors worried that it would have an impact on Dick’s sales. But the strong performance in the first quarter eased investors’ concerns.
Dick’s shares jumped as much as 24.5 percent to $37.93 in the early trading on Wednesday.
"Our strong first quarter earnings reflect improved execution against our merchandising strategy, which resulted in higher merchandise margins. Product newness, strength in our private brands and a more refined assortment led to a much healthier business, with fewer promotions and cleaner inventory throughout the quarter. We believe these benefits will continue as we further optimize our assortments," said Edward W. Stack, Chairman and Chief Executive Officer. "We are also continuing to see the results of investments in our digital experience, and we will continue to invest as we build the best omni-channel experience for all athletes."