Dick’s Sporting Goods has just reported stronger-than-expected third-quarter earnings, despite the sports apparel and footwear market being in a downturn. The company recorded a 2.8% increase in net sales to $3.04 billion and a 10% rise in adjusted earnings per share to $2.85, which were higher than analysts had predicted. This reversed a trend from August when the company missed Wall Street expectations for the first time in three years.

Dick’s Sporting Goods also increased its full-year 2023 outlook for comparable store sales and earnings, amidst a third-quarter earnings season that saw revenue declines or missed expectations from other major players in the industry like Nike, Under Armour, Adidas, and Puma. The company’s CEO, Lauren Hobart, expressed optimism about the future, saying, “Our consumer is not trading down [to lower-quality merchandise], and our consumers have actually held up very, very well.”

As a result of the strong earnings report, Dick’s stock saw a nearly 7% increase in early trading on the New York Stock Exchange. Although it is still working to recover from a 24% drop in August, this positive news bodes well for the company as it enters the critical holiday shopping season. Hobart said, “We are very excited about what we have within our control for Q4. Our [store] teams are pumped to deliver an amazing holiday experience, but we’re balancing that with caution about the macroeconomic environment, because we know consumers are going through a lot right now.”