Athletic gear retailer Dick’s Sporting Goods (DKS) reports third-quarter earnings on Tuesday before the market open. DKS stock edged higher on Monday.
The company reports as it grapples with limited product availability caused by a manufacturing shutdown in Vietnam hitting companies like Nike (NKE).
Dick’s Sporting Goods Earnings
Estimates: Wall Street expects Dick’s to earn $2.06 per share, up 3% from a year ago. Revenue was expected to increase 4% to $2.507 billion. Same-store sales were seen up 3.4%, according to Consensus Metrix.
Results: Due before Tuesday’s open.
DKS Stock
DKS stock rose 1.2% to 140.28 in the stock market today. Foot Locker (FL) rose 2.7% on Monday.
Dick’s was one of the retailers to benefit from an increase in outdoor activity last year, after the coronavirus pandemic restricted indoor forms of entertainment. Not everyone expects those trends to endure.
CFRA analysts who cover DKS stock recently lowered their opinion of the company, saying “we see consumers moderate from elevated spending on fitness equipment and apparel to (spend on) other leisure and travel activities.”
Dick’s, and the athletic brands it sells, have also run into backups at ports and warehouses that have pushed transportation costs higher.
“There’s a pretty fair amount of athletic apparel, athletic footwear, and some golf equipment that comes out of Vietnam,” CFO Lee Belitsky said during a conference in September. “We have given guidance for the balance of this year that suggests that we see the sales going down in the back half, and particularly in the fourth quarter.”
Vietnam has recently reopened its factories. But factories have run into difficulties getting workers to come back.