DICK’S Sporting Goods, Inc. (NYSE:DKS) Q3 2023 Earnings Call Transcript November 21, 2023
DICK’S Sporting Goods, Inc. beats earnings expectations. Reported EPS is $2.85, expectations were $2.42.
Operator: Good morning, ladies and gentlemen, and welcome to the Q3 2023 DICK’S Sporting Goods Earnings Conference Call. [Operator Instructions] And now, at this time, I would like to turn things over to Mr. Nate Gilch, Senior Director Investor Relations. Please go ahead, sir.
Nate Gilch: Good morning, everyone, and thank you for joining us to discuss our third quarter 2023 results. On today’s call will be Lauren Hobart, our President and Chief Executive Officer; and Navdeep Gupta, our Chief Financial Officer. A playback of today’s call will be archived in our Investor Relations website located at investors.dicks.com for approximately 12 months. As a reminder, we will be making forward-looking statements, which are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factor discussions in our filings with the SEC, including our last annual report on Form 10-K and our most recent Form 10-Q filing, as well as cautionary statements made during this call.
We assume no obligation to update any of these forward-looking statements or information. Please refer to our Investor Relations website to find a reconciliation of our non-GAAP financial measures referenced in today’s call. And finally, for your future scheduling purposes, we are tentatively planning to publish our fourth quarter 2023 earnings results on March 11, 2024. With that, I’ll now turn the call over to Lauren.
Lauren Hobart: Thank you, Nate, and good morning, everyone. We are very pleased with our third quarter results, which demonstrate the ongoing strength of our business and the focused execution of our team. We had a very strong back-to-school season, driven by our best-in-class athlete experience and differentiated assortment, and we continue to gain market share as consumers prioritize exporting goods to meet their needs. Our third quarter sales increased 2.8% to $3.04 billion and our comps increased 1.7%, driven by increases in both transactions and average ticket. This strong comp was on top of a 6.5% increase in the same period last year. And during the quarter, we saw more athletes purchase from us, while spending more each trip.
On a non-GAAP basis, our Q3 gross margin expanded by 88 basis points versus the prior year period. And looking to Q4, we expect to see continued year-over-year gross margin expansion. We achieved double-digit non-GAAP EBT margin of 10.6% and delivered non-GAAP EPS of $2.85, up 10% over Q3 last year. As a result of our strong Q3 performance, we are raising our full year outlook. Our updated guidance balances the confidence we have in our key strategies with an acknowledgment of the uncertain macroeconomic environment. For the year, we now expect non-GAAP earnings per diluted share in the range of $12 to $12.60 compared to our prior expectation of $11.50 to $12.30. In addition, we now expect comparable store sales in the range of positive 0.5% to positive 2%, compared to our prior expectation of flat to positive 2%.
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