DICK'S Sporting Q3 Earnings Coming Up: Here's What You Should Know

Ross Stores, Inc. ROST reported results for the third quarter of 2024, wherein the bottom line surpassed the Zacks Consensus Estimates, while the top line missed the same. Net sales and earnings increased from the year-ago period.

Ross Stores, Inc. Price and Consensus

Ross Stores, Inc. price-consensus-chart | Ross Stores, Inc. Quote

The company faced challenges as its low-to-moderate-income customers grappled with persistently high living costs, limiting discretionary spending. Additionally, Hurricanes Helene and Milton, and unseasonably warm temperatures, negatively impacted comparable sales (comps). Despite these hurdles and below-plan sales results, the company delivered earnings that exceeded expectations.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The Zacks Rank #4 (Sell) company’s shares have risen 8.4% in the past six months compared with the industry's 10.5% growth.

Insight Into ROST’s Q3 Performance

Ross Stores, the leading off-price apparel retailer, delivered earnings of $1.48 per share, which surpassed the Zacks Consensus Estimate of $1.39. The bottom line also improved 11.3% from $1.33 per share in the third quarter of fiscal 2023.

Total sales of $5.07 billion rose 3% year over year and missed the Zacks Consensus Estimate of $5.15 billion. Comps declined 1%, mainly driven by hurricanes Helene and Milton, and unseasonably warm temperatures.

The cost of goods sold (COGS) was $3.6 billion, up 1.9% year over year. As a percentage of sales, COGS was 71.7%, marking a year-over-year decrease of 70 basis points (bps). The gross profit rose 5.6% year over year to $1.4 billion, whereas the gross margin expanded 70 bps to 28.3% from the year-ago quarter.

Sneak Peek Into ROST’s Other Financials

Ross Stores ended third-quarter fiscal 2024 with cash and cash equivalents of $4.3 billion, long-term debt of $1.5 billion, and total shareholders’ equity of $5.3 billion.

In the third quarter, the company repurchased 1.8 million shares for $262 million under its two-year $2.1-billion authorization. The company is on track to buy back a total of $1.05 billion in fiscal 2024. As of Nov. 3, 2024, Ross Stores operated 2,192 stores.

What ROST Expects for FY24

For the fourth quarter of 2024, Ross Stores anticipates comps growth of 2-3% compared with growth of 7% achieved in the fourth quarter of fiscal 2023. The company foresees fourth-quarter EPS to be $1.35-$1.41, down from $1.82 in the prior-year quarter.

Based on Ross Stores' performance in the year-to-date period in 2024 and its outlook for the fourth quarter, the company now anticipates EPS for the 52 weeks ending Feb. 1, 2025, to be $6.10-$6.17, suggesting an increase from $5.56 in fiscal 2023. The company’s fourth quarter and fiscal 2024 EPS include a 20-cent gain from the 53rd week.

Stocks to Consider

We have highlighted three better-ranked stocks in the broader sector, namely Deckers DECK, Abercrombie & Fitch Co. ANF and Nordstrom Inc. JWN.

Deckers, a footwear and accessories dealer, currently sports a Zacks Rank #1 (Strong Buy). DECK delivered an average earnings surprise of 41.1% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Deckers’ current financial-year sales and earnings indicates growth of 13.6% and 12.6%, respectively, from the year-ago reported figures.

Abercrombie, a leading casual apparel retailer, presently carries a Zacks Rank of 2 (Buy). Abercrombie has a trailing four-quarter earnings surprise of 27.9%, on average.

The Zacks Consensus Estimate for ANF’s current financial-year sales and earnings indicates growth of 13% and 64.2%, respectively, from the year-ago reported figures.

Nordstrom is a leading fashion specialty retailer in the United States. The company offers an extensive selection of both branded and private-label merchandise. It currently has a Zacks Rank of 2.

The Zacks Consensus Estimate for Nordstrom’s fiscal 2024 sales indicates growth of 0.9% from the fiscal 2023 reported figure. JWN has a trailing four-quarter average negative earnings surprise of 17.8%.

Zacks Investment Research

Shoe Carnival, Inc. SCVL reported third-quarter fiscal 2024 results, wherein the top line lagged the Zacks Consensus Estimate and bottom line surpassed the same. Both metrics declined year over year.

The company witnessed weak performance, with lower adjusted gross profit and operating income, although these were partially offset by synergies from the Rogan’s acquisition and reduced SG&A expenses. Progress was made on the store rebanner strategy, with several Shoe Carnival stores converted to Shoe Station. For the full fiscal 2024, the company has revised its sales guidance, expecting modest growth despite the calendar shift and a shorter fiscal year.

Shoe Carnival, Inc. Price, Consensus and EPS Surprise

Shoe Carnival, Inc. price-consensus-eps-surprise-chart | Shoe Carnival, Inc. Quote

More on SCVL’s Q3 Results

Shoe Carnival reported adjusted earnings per share of 71 cents, which beat the Zacks Consensus Estimate of 61 cents. However, the bottom line declined from adjusted earnings of 80 cents per share reported in the year-ago quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Net sales amounted to $306.9 million, down 4.1% year over year. Also, the top line missed the consensus estimate of $311 million. This decline reflects the effects of a retail calendar shift, which moved approximately $20 million of net sales out of the fiscal third quarter of 2024 compared with the previous year. Comparable store sales declined 4.1% year over year in the quarter under review.

Shoe Carnival’s Margin & Cost Details

Adjusted gross profit decreased 6% year over year to $110.6 million. The adjusted gross margin of 36.1% contracted 70 basis points (bps) year over year. This decrease was due to higher merchandise margins and leverage in buying, distribution, and occupancy costs associated with operating more stores, as well as the deleveraging effect of reduced net sales during the quarter due to the retail calendar shift.

Adjusted selling, general and administrative expenses decreased 4.5% year over year to $85.7 million. The decrease was primarily attributed to lower selling costs at Shoe Carnival and Shoe Station banner stores, which more than offset the costs associated with operating the recently acquired Rogan’s stores during the quarter.

As a percentage of net sales, selling, general and administrative expenses declined 10 bps year over year to 28%. Moreover, the company realized synergies within Rogan’s during the fiscal third quarter of 2024 and is ahead of schedule in integrating the acquired operations.

Adjusted operating income decreased 10.9% year over year to $24.9 million. As a percentage of net sales, this metric declined 60 bps year over year to 8.1%. This decline was primarily due to lower net sales resulting from the calendar shift, partially offset by growth from the Rogan’s acquisition and associated synergies, as well as reduced SG&A expenses.

SCVL’s Store Update

As of Nov. 21, 2024, the company reached a milestone of 431 stores, consisting of 361 Shoe Carnival, 42 Shoe Station stores and 28 Rogan’s locations. In the fiscal third quarter, one new Shoe Station store was opened in Tennessee, marking the brand's entry into a new market.

The company made progress on its store banner growth strategy during the quarter, with seven Shoe Carnival stores converted to Shoe Station stores. In total, 10 stores have now been rebannered. The company plans to rebanner 25 more Shoe Carnival stores to Shoe Station stores in the first half of fiscal 2025.

Shoe Carnival’s Financial Health Snapshot

The company ended the quarter with cash and cash equivalents of $77.2 million, a long-term portion of operating lease liabilities of $317.7 million and total shareholder’s equity of $635.7 million.

As of Nov. 21, 2024, the company had $50 million available for future share repurchases. SCVL did not engage in any share repurchase activity during the quarter.

SCVL’s Fiscal 2024 Outlook

Following the third-quarter results, the company has updated its guidance range for fiscal 2024. Net sales are now projected to be between $1.20 billion and $1.23 billion, revised from the prior range of $1.23 billion-$1.25 billion, representing growth of 2% to 4.5% compared with fiscal 2023. The company remains on track for Rogan’s acquisition to generate over $80 million in net sales for fiscal 2024. Gross margin is expected to remain consistent with fiscal 2023. Gross margin was 35.8% in fiscal 2023.

SG&A, as a percentage of net sales, is anticipated to increase by approximately 30 basis points compared with fiscal 2023, slightly improved from the previous guidance of a 40-basis-point increase.

GAAP earnings per share (EPS) remains forecasted in the range of $2.55-$2.70, while adjusted EPS is expected to be between $2.60 and $2.75. In fiscal 2023, GAAP EPS was $2.68 and adjusted EPS was $2.70.

The company informed that fiscal 2024 comprises 52 weeks compared with 53-week fiscal 2023. This, combined with the retail calendar shift, is expected to reduce fiscal fourth-quarter 2024 net sales by approximately $20 million compared with the prior-year period, with an estimated negative impact of 10 cents on EPS.

Shares of this Zacks Rank #4 (Sell) company have lost 23.3% in past three months compared with the industry’s decline of 5.6%.

Key Picks

We have highlighted three better-ranked stocks, namely, Abercrombie & Fitch Co. ANF, Gildan Activewear Inc. GIL and Steven Madden, Ltd. SHOO.

Abercrombie is a specialty retailer of premium, high-quality casual apparel. It carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ANF delivered a 16.8% earnings surprise in the last reported quarter.

The Zacks Consensus Estimate for Abercrombie’s fiscal 2025 earnings and sales indicates growth of 64.8% and 13.4%, respectively, from fiscal 2024 reported levels. ANF has a trailing four-quarter average earnings surprise of 28%.

Gildan is a manufacturer and marketer of premium quality branded basic activewear for sale principally in the wholesale imprinted activewear segment of North America’s apparel market. It currently carries a Zacks Rank #2.

The consensus estimate for Gildan’s current financial-year earnings and sales indicates growth of 15.6% and 1.5%, respectively, from figures of 2023. GIL has a trailing four-quarter average earnings surprise of 5.4%.

Steven Madden designs, sources, markets, and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank of 2.

The Zacks Consensus Estimate for Steven Madden’s 2024 earnings and sales indicates growth of 8.2% and 13.4%, respectively, from the year-ago actuals. SHOO has a trailing four-quarter average earnings surprise of 9.8%.

Zacks Investment Research

Kohl's Corporation KSS is likely to register declines in the top and bottom lines when it reports third-quarter fiscal 2024 earnings on Nov. 26. The Zacks Consensus Estimate for revenues is pegged at $3.8 billion, which indicates a 5.3% decrease from the year-ago quarter's actual. The consensus mark for quarterly earnings moved down by a penny in the last seven days to 27 cents per share, indicating a decline of 49.1% from the year-ago quarter’s reported figure. KSS has a trailing four-quarter negative earnings surprise of 145.3%, on average.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Things to Know About KSS’ Upcoming Results

Kohl's continues to face significant challenges due to a tough macroeconomic environment. The company is experiencing pressure from cautious consumer spending, with customers becoming more selective, leading to lower sales despite a rise in transaction frequency. Underlying inflation is affecting purchasing power, especially among middle-income shoppers.

In addition, the ongoing weakness in Kohl’s digital business poses a threat to its performance. The persistence of these factors poses a threat to Kohl’s performance in the to-be-reported quarter, as the company navigates persistent pressures in the current retail environment.

Despite facing challenges, Kohl’s is benefiting from its successful partnership with Sephora. The company has also been prioritizing the growth of underdeveloped categories such as home décor, gifting and impulse items. The continuation of these positive trends is likely to have provided some respite in the fiscal third quarter.

Kohl's Corporation Price and EPS Surprise

Kohl's Corporation price-eps-surprise | Kohl's Corporation Quote

Earnings Whispers for KSS

Our proven model does not conclusively predict an earnings beat for Kohl's this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

KSS has a Zacks Rank #3 and an Earnings ESP of -7.41%.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the correct combination to beat on earnings this time.

Casey's General Stores CASY currently has an Earnings ESP of +5.22% and a Zacks Rank of 2. The Zacks Consensus Estimate for CASY’s quarterly revenues is pegged at $4.05 billion, which implies a 0.5% decline from the year-ago quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

However, CASY’s bottom line is anticipated to increase year over year when it reports second-quarter fiscal 2025 results. The consensus estimate for earnings is pegged at $4.28 per share, indicating 0.9% growth from the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 15.8%, on average.

Abercrombie & Fitch ANF currently has an Earnings ESP of +4.59% and a Zacks Rank of 2. ANF is likely to register growth in top and bottom lines when it reports third-quarter fiscal 2024 results.

The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.18 billion, indicating an 11.8% increase from the figure reported in the year-ago quarter. The consensus estimate for ANF’s earnings is pegged at $2.32 per share, implying 26.8% growth from the year-ago quarter’s actual. ANF has a trailing four-quarter earnings surprise of 28%, on average.

Dollar Tree DLTR has an Earnings ESP of +2.80% and a Zacks Rank of 3. The company is likely to register growth in top and bottom lines when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for DLTR’s quarterly revenues is pegged at $7.45 billion, which indicates 1.9% growth from the figure reported in the prior-year quarter.

The consensus estimate for Dollar Tree’s quarterly earnings has risen by 1 cent over the past 30 days to $1.07 per share. The figure calls for growth of 10.3% from the year-ago quarter’s number. DLTR delivered an average negative earnings surprise of 10.9% in the trailing four quarters.

Zacks Investment Research

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Abercrombie & Fitch (ANF) is a stock many investors are watching right now. ANF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 13.01 right now. For comparison, its industry sports an average P/E of 15.91. Over the past 52 weeks, ANF's Forward P/E has been as high as 24.20 and as low as 12.68, with a median of 16.21.

Finally, our model also underscores that ANF has a P/CF ratio of 11.26. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ANF's current P/CF looks attractive when compared to its industry's average P/CF of 12.82. Over the past 52 weeks, ANF's P/CF has been as high as 18.04 and as low as 10.69, with a median of 13.34.

These are just a handful of the figures considered in Abercrombie & Fitch's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ANF is an impressive value stock right now.

Zacks Investment Research

Guess?, Inc. GES is likely to register top-line growth when it reports third-quarter fiscal 2025 earnings on Nov. 26. The Zacks Consensus Estimate for revenues is pegged at $751 million, implying a 15.3% increase from the prior-year quarter’s reported figure. The consensus mark for earnings has remained unchanged in the past 30 days at 43 cents per share, though it indicates a 12.2% decline from the figure reported in the year-ago quarter. GES has a trailing four-quarter earnings surprise of 8.7%, on average.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Factors Likely to Fuel GES’ Upcoming Results

Guess? has been benefiting from robust brand momentum globally and strong customer response to its collections across various product categories. The company has been focused on its core strategies, which include organization and culture, functional capacities, brand relevance with three main consumer groups (heritage, Millennials and Generation Z customers), customer focus, product brilliance and international footprint.

A strong global platform bodes well for the company’s Guess and Marciano businesses. Gains from the rag & bone acquisition (concluded in April 2024) are likely to contribute to third-quarter results. The company’s wholesale business also represents a significant growth driver, with strong performances in the European and American markets.

Guess?’s expansive global footprint, broad channel capabilities, extensive supply chain, diverse category portfolio and strong management team are likely to have acted as upsides in the quarter under review. For the third quarter of fiscal 2025, the company expects revenue growth in the 14.5-16.5% band.

Guess?, Inc. Price, Consensus and EPS Surprise

Guess?, Inc. price-consensus-eps-surprise-chart | Guess?, Inc. Quote

Challenges Expected in GES’ Q3 Release

Guess? continues to operate in a dynamic shopping environment where consumers are increasingly selective and more sensitive to pricing and promotions. A volatile consumer landscape is likely to have impacted the upcoming results. High operating costs are a threat to Guess?. Management expects freight costs to be an added challenge for the gross margin in the second half of the year due to shipping issues from the Red Sea crisis. This is likely to have affected profits in the third quarter.

For the third quarter of fiscal 2025, the adjusted operating margin is likely to be between 4.7% and 5.8%, down from 8.9% recorded in the third quarter of fiscal 2024. Adjusted earnings per share for the quarter are forecasted in the range of 33-45 cents, suggesting a decline from the 49 cents reported in the year-ago period.

Earnings Whispers for GES

Our proven model doesn’t conclusively predict an earnings beat for Guess? this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Guess? carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the correct combination to beat on earnings this time.

Casey's General Stores CASY currently has an Earnings ESP of +5.22% and a Zacks Rank of 2. The Zacks Consensus Estimate for CASY’s quarterly revenues is pegged at $4.05 billion, which implies a 0.5% decline from the year-ago quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

However, CASY’s bottom line is anticipated to increase year over year when it reports second-quarter fiscal 2025 results. The consensus estimate for earnings is pegged at $4.28 per share, indicating 0.9% growth from the year-ago quarter. Casey's General has a trailing four-quarter earnings surprise of 15.8%, on average.

Abercrombie & Fitch ANF currently has an Earnings ESP of +4.59% and a Zacks Rank of 2. ANF is likely to register bottom and top-line growth when it reports third-quarter fiscal 2024 results.

The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.18 billion, indicating an 11.8% increase from the figure reported in the year-ago quarter. The consensus estimate for ANF’s earnings is pegged at $2.32 per share, implying 26.8% growth from the year-ago quarter’s actual. Abercrombie & Fitch has a trailing four-quarter earnings surprise of 28%, on average.

Victoria's Secret & Co. VSCO currently has an Earnings ESP of +5.82% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for VSCO’s quarterly revenues is pegged at $1.28 billion, which suggests 1.2% growth from the figure reported in the prior-year quarter.

The company is also likely to register a bottom-line improvement when it reports third-quarter fiscal 2024 results. The consensus estimate for Victoria's Secret’s bottom line is pegged at a loss of 66 cents per share, indicating a 1.2% improvement from the year-ago quarter. VSCO has a trailing four-quarter earnings surprise of 2.9%, on average.

Zacks Investment Research

Nordstrom, Inc. JWN is scheduled to release third-quarter fiscal 2024 results on Nov. 26 after the closing bell. This fashion specialty retailer is expected to have witnessed revenue growth in the to-be-reported quarter. The Zacks Consensus Estimate for revenues is pegged at $3.33 billion, which indicates a rise of 0.3% from the figure reported in the year-ago quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The consensus estimate for earnings is pegged at 23 cents per share, which indicates a decline of 8% from that reported in the year-ago quarter. The consensus mark for earnings has moved up by a penny in the past seven days.

In the last reported quarter, the company surpassed the earnings estimate by 29.7%. Also, it delivered a negative earnings surprise of 17.8%, on average, in the trailing four quarters.

Nordstrom, Inc. Price, Consensus and EPS Surprise

Nordstrom, Inc. price-consensus-eps-surprise-chart | Nordstrom, Inc. Quote

Key Factors to Note

Nordstrom’s top-line results in third-quarter fiscal 2024 are likely to reflect benefits from robust strategic efforts, including the expansion of the reach of Nordstrom Rack and the enhancement of digital capabilities. The company has been focused on the closer-to-you strategy, which aims to link stores and services to expedite deliveries, expand online offerings and add cheaper merchandise at its Rack off-price stores to enrich customers' shopping experiences.

Increased focus on distribution facilities and improved connectivity of physical and digital capabilities are expected to have boosted the company’s performance in the to-be-reported quarter. It has been introducing more premium brands and better assortments at Rack and increasing brand awareness. These efforts are expected to have driven Rack’s performance and overall sales. Our model estimates a 5.3% improvement in sales for the Nordstrom Rack segment in the fiscal third quarter.

Nordstrom has been making efforts to enhance customer experience through faster delivery. Hence, the company remains focused on operational optimization. JWN continues seeking additional efficiencies in flow and improved productivity through inventory management initiatives. These upsides are likely to have contributed to the upcoming results.

The Rack banner also remains on track to increase productivity throughout its network, cut transportation costs, reduce delivery times, and enhance services via faster delivery. The company continues focusing on introducing more premium brands at Rack, better assortment, and increasing brand awareness.

What Does the Zacks Model Say About JWN Stock?

Our proven model conclusively predicts an earnings beat for Nordstrom this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Nordstrom has an Earnings ESP of +5.37% and a Zacks Rank of 2 at present.

Stocks With the Favorable Combination

Abercrombie & Fitch ANF currently has an Earnings ESP of +4.59% and a Zacks Rank of 2. The company is likely to register growth in top and bottom lines when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.2 billion, which indicates an increase of 11.8% from the figure reported in the prior-year quarter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for quarterly earnings per share of $2.32 suggests an increase of 26.8% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for Nordstrom’s earnings has moved up by a penny in the past 30 days.

Urban Outfitters URBN currently has an Earnings ESP of +8.17% and a Zacks Rank of 2. The company is likely to register top-line growth and bottom-line decline when it reports third-quarter fiscal 2024 results. The consensus mark for URBN’s quarterly revenues is pegged at $1.3 billion, which suggests a growth of 4.1% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Urban Outfitters’s earnings has moved up by a penny to 84 cents per share in the past seven days. The consensus estimate indicates a decline of 4.6% from the year-ago quarter’s actual.

Torrid Holdings CURV presently has an Earnings ESP of +23.08% and a Zacks Rank of 2. The company is likely to register growth in the top and bottom lines when it reports third-quarter fiscal 2024 results. The consensus mark for CURV’s quarterly revenues is pegged at $2.8 billion, which suggests 2.7% growth from the figure reported in the prior-year quarter.

The consensus mark for Torrid Holdings quarterly earnings has moved up by a penny in the past 30 days to 3 cents per share. The consensus estimate suggests an increase of 200% from the year-ago quarter’s actual.

Zacks Investment Research