Dick’s Sporting Goods defies woes of athletic-wear industry

​Dick’s Sporting Goods Inc. raised its outlook for the year and reported sales that surpassed analysts’ estimates with strong demand for sports gear across categories even as athletic-wear companies struggle.

Comparable store sales, a key retail metric, rose 5.3% for the quarter ended May 4, much higher than the 2.5% growth that Wall Street projected. The retailer now expects comparable sales to be up between 2% to 3% for the full year, with earnings per diluted share within a range of $13.35 to $13.75.

“We saw growth across all aspects of our business,” Chief Executive Officer Lauren Hobart said on a conference call with analysts. “We’re taking share really across the board.”

The shares rose as much as 9% on Wednesday morning in New York. The stock had risen 33% this year through Tuesday’s close.

Dick’s has been resilient despite investor concerns about consumer discretionary spending and weakness at the major athletic-wear brands. Nike Inc. is cutting $2 billion in costs and laying off 2% of its workforce, Lululemon Athletica Inc. reported a slowdown in its US business and Under Armour Inc.’s weak sales have led to a restructuring.

Analysts say Dick’s is swiping market share from both specialty rivals such as Foot Locker Inc., which has pushed back its revenue growth goals by two years, and generalist competitors like Target Corp. through its robust product lineup and brand partnerships.

“That this has been delivered against the backdrop of more skittish consumer spending is a testament to the strength of Dick’s proposition,” Neil Saunders, an analyst at GlobalData, said in a note to clients. “Dick’s is also winning share from other retailers.”

Management called out upcoming releases from Nike, one of their most vital partners, that were revealed in Paris in April. Nike showcased new product developments in the running category and its Air technology that’s being fast-tracked to market.

Hobart has also been expanding a new retail concept by renovating or relocating stores as House of Sport locations, with amenities such as batting cages and golf club repairs. Management plans to boost spending on both e-commerce and physical locations.