Dick's Sporting Goods Inc (NYSE:DKS) shares are trading higher after the company reported better-than-expected first-quarter FY24 earnings and raised the outlook.

The company reported first-quarter FY24 sales growth of 6.2% year-on-year to $3.02 billion, beating the analyst consensus estimate of $2.94 billion.

Comparable store sales increased 5.3% versus a 3.6% growth a year ago. Adjusted EPS of $3.30 beat the analyst consensus estimate of $2.95.

Gross profit margin expanded 10 basis points Y/Y to 36.29%. The operating margin contracted 50 basis points to 10.96%, and operating income for the quarter climbed 1.6% to $330.8 million.

The company held $1.6 billion in cash and equivalents as of May 4. Total inventory at the end of the quarter increased by 6% Y/Y. The retailer ended the year with 857 stores versus 863 stores last year.

The company's Board of Directors declared a quarterly dividend of $1.10 per share, payable in cash on June 28 to stockholders of record on June 14. 

Net capital expenditure for the quarter increased 107% to $126 million.

Outlook: Dick's Sporting Goods raised FY24 EPS outlook from $12.85 – $13.25 to $13.35 – $13.75 versus the consensus of $13.25. 

The company also raised FY24 net sales guidance from $13 billion – $13.13 billion to $13.1 billion – $13.2 billion, against an estimate of $13.16 billion.

The company raised its guidance for comparable sales growth to a range of 2.0% to 3.0%, up from 1.0% to 2.0% previously.

Price Action: DKS shares are trading higher by 7.21% at $209.05 premarket at the last check Wednesday.