What To Expect From Dick’s (DKS) Q2 Earnings

Sporting goods retailer Dick’s Sporting Goods (NYSE:DKS) will be reporting earnings tomorrow morning. Here’s what investors should know.

Dick's beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $3.17 billion, up 5.2% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations.

Is Dick's a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Dick’s revenue to grow 3.8% year on year to $3.61 billion, slowing from the 7.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.30 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dick's has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.7% on average.

Looking at Dick’s peers in the specialty retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Sally Beauty posted flat year-on-year revenue, meeting analysts’ expectations, and Warby Parker reported revenues up 13.9%, topping estimates by 0.7%. Sally Beauty traded up 21.1% following the results while Warby Parker was down 3.9%.

Read our full analysis of Sally Beauty’s results here and Warby Parker’s results here.

There has been positive sentiment among investors in the specialty retail segment, with share prices up 5% on average over the last month. Dick's is up 5.6% during the same time and is heading into earnings with an average analyst price target of $224.37 (compared to the current share price of $226.81).

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