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Research Alert: Dick's Sporting Goods Posts Mixed Quarter; Maintains Non-gaap Eps Guidance

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

DICK'S Sporting Goods reported consolidated net sales of $5.16B, up 63% and $100M above consensus, driven by the DICK'S Business contributing $3.38B and newly acquired Foot Locker adding $1.79B. Non-GAAP EPS of $2.90 declined from $3.37 in the prior year and came in $0.01 below consensus, reflecting dilution from 9.6M shares issued for the Foot Locker acquisition and integration costs. We are encouraged by early Foot Locker results, including a return to positive comparable sales growth of 0.6% and the Fast Break initiative showing double-digit comp sales improvements across approximately 100 stores globally. The company raised comparable sales guidance for both businesses, with DICK'S Business outlook improving to 2.5%-4.0% from 2.0%-4.0% and Foot Locker guidance increasing to 1.5%-3.0% from 1.0%-3.0%. We continue to believe the company has the right management team to improve Foot Locker profitability in coming quarters while maintaining balanced capital deployment through share repurchases and dividends.

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