11:03 AM EST, 11/26/2024 (MT Newswires) -- Dick's Sporting Goods (DKS) on Tuesday reported better-than-expected fiscal third-quarter results and raised its full-year outlook as the sporting goods retailer expressed optimism for the key holiday shopping season.

Adjusted earnings fell to $2.75 per share during the three months ended Nov. 2 from $2.85 a year earlier. Analysts polled by FactSet expected $2.68. Net sales edged 0.5% higher to $3.06 billion, above Wall Street's $3.03 billion view.

Comparable sales grew 4.2%, higher than a 2.7% increase modeled by analysts as the retailer benefited from "an excellent back-to-school season" and market share gains, Chief Executive Lauren Hobart said in a statement.

"We've deliberately taken steps to be fully stocked across key products and categories for holiday shopping," Hobart said on an earnings conference call, according to a FactSet transcript. "Looking ahead, we are optimistic about the product pipeline into next year."

The company expects its product base and omni-channel experience to "resonate well with our athletes this holiday season," Hobart told analysts.

Due to the 53rd week in fiscal 2023, there's a one-week shift in the 2024 calendar year, reducing third-quarter revenue by $105 million and dragging EPS lower by $0.35. The shift, however, boosted year-to-date sales by $35 million, or $0.10 per share.

The move "shifted a key back-to-school week" out of the third quarter and into the second, unfavorably impacting third-quarter sales, Chief Financial Officer Navdeep Gupta said on the call.

Dick's Sporting Goods said it now expects full-year EPS of $13.65 to $13.95, compared with the previous forecast of $13.55 to $13.90. Net sales are now pegged at $13.2 billion to $13.3 billion, up from $13.1 billion to $13.2 billion previously projected, the company said. Market expectations are for $13.29 billion.

Dick's Sporting Goods now expects full-year comparable sales growth in the 3.6% to 4.2% range, versus prior expectations of a 2.5% to 3.5% increase, Gupta said on the call.

The increased outlook reflects a strong third-quarter performance, a dynamic economic environment and a shorter holiday shopping season this year, Gupta told analysts.

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