Dick’s Sporting Goods (NYSE: DKS) shares tumbled Tuesday, despite the company’s positive third-quarter earnings which encouraged the company to increase its annual forecast. The earnings report was disclosed amid ongoing supply chain issues, which have impacted various apparel companies.
The sporting goods retail company reported earnings of USD3.19 per share, compared to the expected USD1.97 a share. Revenue amounted to USD2.75 Billion, higher than analysts anticipated USD2.50 Billion. Furthermore, its valuation is currently USD12.5 Billion.
“We are extremely pleased to announce a record third quarter in which we delivered significant sales and earnings growth over both last year and 2019. Consumer demand remained strong, and our differentiated product assortment continued to drive exceptional sales and merchandise margin momentum. I’d like to thank all of our teammates for their hard work and commitment to DICK’S Sporting Goods, which helped make this performance possible,” said Lauren Hobart, President, and Chief Executive Officer. “Our fourth quarter is off to a strong start, and we are pleased to increase our full-year outlook for the third time this year. Looking ahead, we remain very confident in the longer-term prospects of our business.”
The company now foresees to earn anywhere from USD12.45 and USD12.95 per share, on sales of USD11.52 Billion to USD11.72 Billion.
“Our strategies continue to work as we reimagine the athlete experience in our core business and with new concepts. As we said before, we believe this will be the most transformational year in our history, and we expect to continue this transformation into 2022. I couldn’t be more excited about the future of DICK’S Sporting Goods,” said Ed Stack, Executive Chairman.