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Dick's Sporting Goods 1Q Results Exceed Expectations, Bolstered By Online Sales

Nam Y. Huh

Dick's Sporting Goods' fiscal first-quarter performance topped Wall Street's view, bolstered partly by strong online sales. 

The sporting goods retailer also boosted its full-year earnings outlook.

Shares surged more than 24 percent before the market open on Wednesday.

The high earnings follow the company's controversial decsion to stop selling assault-style rifles and ban the sale of all guns to anyone under 21, following the school shooting in Parkland, Fla. that left 17 dead. Shoppers in Pittsburgh, where Dick's is headquartered, had mixed feelings about the decision

Dick's also announced last month that it would destroy all of the guns and accessories it pulled from its shelves

For the period ended May 5, Dick's Sporting Goods Inc. earned $60.1 million, or 59 cents per share. A year earlier the Coraopolis, Pennsylvania-based company earned $58.2 million, or 52 cents per share.

The results easily beat the 42 cents per share that analysts surveyed by Zacks Investment Research were calling for.

Revenue increased to $1.91 billion from $1.83 billion, topping the $1.88 billion that Wall Street expected. Online sales jumped 24 percent.

Chairman and CEO Edward Stack said in a written statement that new products, strength in private brands and a leaner product assortment led to a healthier business.

Dick's now foresees full-year earnings between $2.92 and $3.12 per share. Its prior guidance was for earnings in a range of $2.80 to $3 per share. Analysts surveyed by FactSet predict earnings of $2.92 per share.