Lowe's, BJ's Wholesale, DICK's Sporting Report Q1 Profits

(RTTNews) - Retailers Lowe's Cos. Inc. (LOW), BJ's Wholesale Club Holdings Inc. (BJ) and DICK'S Sporting Goods, Inc. (DKS) reported profits for the fourth quarter, with Lowe's and DICK'S Sporting topping estimates, while BJ's met it. DICK'S Sporting and BJ's also reaffirmed their respective guidance for the full-year 2023, while Lowe's trimmed it.

Home improvement retailer Lowe's Companies reported net earnings for the first quarter of $2.26 billion or $3.77 per share, compared to $2.33 billion or $3.51 per share in the prior-year quarter. Excluding items, adjusted earnings were $3.67 per share.

Total sales for the quarter decreased to $22.35 billion from $23.66 billion in the same quarter last year, and consolidated comparable sales were down 4.3 percent.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $3.44 per share on sales of $21.60 billion for the quarter. Analysts' estimates typically exclude special items.

Looking ahead to fiscal 2023, Lowe's now projects earnings in a range of $13.20 to $13.60 per share on total sales between $87 billion and $89 billion. Comparable sales are expected to decline 2 to 4 percent.

Previously, the company expected earnings in the range of $13.60 to $14.00 per share on total sales between $88 billion and $90 billion. Comparable sales are expected to range from flat to down 2 percent.

The Street is looking for earnings of $13.60 per share on sales of $88.45 billion for the year.

BJ's Wholesale announced that net income for the first quarter grew to $116.08 million or $0.85 per share from $112.45 million or $0.82 per share in the prior-year quarter.

Excluding items, adjusted net income was $0.85 per share, compared to $0.87 per share in the year-ago quarter.

Total revenues for the quarter increased 5.0 percent to $4.72 billion from $4.50 billion in the same quarter last year.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.85 per share on revenues of $4.80 billion for the quarter.

Net sales grew 5.0 percent to $4.62 billion and membership fee income increased 6.1 percent to $102.52 million from last year.

Total comparable club sales increased 2.0 percent and comparable club sales, excluding the impact of gasoline sales, grew 5.7 percent. Digitally-enabled comparable sales growth was 19.0 percent.

Looking ahead to fiscal 2023, BJ's continues to expect earnings per share to remain approximately flat year-over-year, including the 53rd week benefit of low-teens cents per share, implying earnings of about $3.76 per share. Comparable club sales, excluding the impact of gasoline sales, are expected to increase 4 to 5 percent.

The Street is looking for earnings of $3.96 per share for the year.

Over the long term, the company still projects earnings per share growth in the high-single to low-double digit percent, total revenue growth in the mid-single digit percent, and comparable club sales growth in the low-to-mid single digit percent, excluding the impact of gasoline sales.

Meanwhile, sporting goods retailer DICK's Sporting's net income grew to $304.65 million or $3.40 per share from $260.56 million or $2.47 per share in the prior-year quarter.

Net sales for the quarter increased 5.3 percent to $2.84 billion from $2.70 billion in the same quarter last year. Comparable store sales grew 3.4 percent, driven by a 2.7 percent increase in transactions as well as higher average ticket.

The Street was looking for earnings of $3.18 per share on net sales of $2.80 billion for the quarter.

Looking ahead to fiscal 2023, the company continues to project earnings in the range of $12.90 to 13.80 per share and consolidated same store sales growth between flat and up 2 percent. Analysts expect earnings of $13.44 per share for the year.

On Monday, the Company's Board of Directors authorized and declared a quarterly dividend of $1.00 per share on the Company's Common Stock and Class B Common Stock, payable in cash on June 30, 2023 to stockholders of record at the close of business on June 16, 2023.

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