Dick's Sporting Goods stock rises on Q1 earnings beat

Yahoo Finance Live discusses a rise in shares of Dick's Sporting Goods after the sports retailer's Q1 earnings topped analyst expectations.

Video transcript

- First, let's dive into Dick's here. Dick's Sporting Goods reaffirming its outlook and beating estimates on the top and bottom line in the latest quarter. CEO Lauren Hobart touting that despite macroeconomic uncertainties, consumer demand is still strong for the company.

The shares not much changed share up, just about a half of 1%. US comps did miss estimates by a bit of 3.4%. 3.7% is what analysts had been anticipating. It's not a great quarter. But the company didn't change its full-year forecast.

- They're still enthusiastic as most CEOs would or should be about their companies. But they said that they're very enthusiastic about their strategies. Continue to invest in some of the longer-term growth opportunities as well, including a return to square footage growth. Now, this is interesting because for Dick's Sporting Goods and some of the subsidiaries that they've run, you think about at Golf Galaxy, you think about Going, Going, Gone, as well. And I had totally forgotten about that business for a while.

But all of those things considered, they've got more of this footprint that they're now looking at as combo stores even to, where within the same shopping center, they are annexed to one another. So close proximity, typically, you would see that of a Dick's Sporting Goods being in the same vicinity generally of a Golf Galaxy. But now, getting some of that square footage closer could be what they're leaning towards, even in their strategy towards that square footage growth there.

So that'll be interesting to hear more about in the future. But, again, it bucks the trend that we've seen, even through some of the economic data that had come through on the consumer price index side, where you had actually seen a move for the retail. But specialty retail stores-- excuse me, the retail sales data were in specialty stores, such as sporting goods and equipment, where that was lower and took one of the larger hits.

Dick's, at least, bucking that for right now. We'll see what this holds for the summer months, though. That's going to be interesting as well.

- And it seems like growth, they held the line in gross margin too. That's something you've seen some analyst commentary about. I guess in this environment, if you have an OK quarter, but not amazing, if you're in this space, that's viewed as positive.

- It has been an earnings season of relief, if we can summarize it that way.

- Especially for a retailer like this.