Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Dick's (NYSE:DKS) and its peers.
Some of us spend our leisure time vegging out, but many others take to the courts, fields, beaches, and campsites; sports equipment retailers cater to the avid sportsman as well as the weekend warrior. Shoppers can find everything from tents to lawn games to baseball bats to satisfy their athletic and leisure needs along with competitive prices and helpful store associates that can talk through brands, sizing, and product quality. This is a category that has moved rapidly online over the last few decades, so these sports and outdoor equipment retailers have needed to be nimble and aggressive with their e-commerce and omnichannel presences.
The 4 sports & outdoor equipment retailer stocks we track reported a slower Q1; on average, revenues were in line with analyst consensus estimates. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and sports & outdoor equipment retailer stocks have had a rough stretch, with share prices down 13.5% on average since the previous earnings results.
Best Q1: Dick's (NYSE:DKS)
Started as a hunting supply store, Dick’s Sporting Goods (NYSE:DKS) is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.
Dick's reported revenues of $3.02 billion, up 6.2% year on year, exceeding analysts' expectations by 2.7%. Overall, it was a strong quarter for the company with optimistic earnings guidance for the full year and a decent beat of analysts' earnings estimates.
Dick's achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. The stock is up 2.9% since reporting and currently trades at $200.58.
Is now the time to buy Dick's? Access our full analysis of the earnings results here, it's free.
Hibbett (NASDAQ:HIBB)
With a focus on small and mid-sized markets, Hibbett (NASDAQ:HIBB) is a specialty retailer that sells athletic apparel and footwear as well as select sports equipment.
Hibbett reported revenues of $447.2 million, down 1.8% year on year, falling short of analysts' expectations by 1.5%. However, it was still a decent quarter for the company with an impressive beat of analysts' gross margin estimates.
The market seems content with the results as the stock is up 1.4% since reporting. It currently trades at $87.48.
Is now the time to buy Hibbett? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Sportsman's Warehouse (NASDAQ:SPWH)
A go-to destination for individuals passionate about hunting, fishing, camping, hiking, shooting sports, and more, Sportsman's Warehouse (NASDAQ:SPWH) is an American specialty retailer offering a diverse range of active gear, equipment, and apparel.
Sportsman's Warehouse reported revenues of $244.2 million, down 8.7% year on year, falling short of analysts' expectations by 1.6%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
Sportsman's Warehouse posted the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 49.5% since the results and currently trades at $1.92.
Read our full analysis of Sportsman's Warehouse's results here.
Academy Sports (NASDAQ:ASO)
Founded in 1938 as a tire shop before expanding into fishing equipment, Academy Sports & Outdoor (NASDAQ:ASO) sells a broad selection of sporting goods but is still known for its outdoor activity merchandise.
Academy Sports reported revenues of $1.36 billion, down 1.4% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with a miss of analysts' gross margin and earnings estimates.
The stock is down 8.6% since reporting and currently trades at $48.81.
Read our full, actionable report on Academy Sports here, it's free.
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