A Dick sporting goods store
Craig Warga | Bloomberg | Getty Images
Shares of Dick’s Sporting Goods rose on Wednesday after the retailer reported 21% growth in second-quarter sales and boosted its outlook for the year.
Shares rose about 11% in premarket trading.
Large store sales have increased during the coronavirus pandemic as customers have purchased training clothing, sneakers, golf clubs and other outdoor equipment. Sales in the second quarter were 45% higher than in the same quarter of 2019.
This is what the company did during its second quarter ended July 31 compared to what Wall Street expected, according to a survey by Refinitiv analysts:
- Earnings per share: $ 5.08 adjusted versus $ 2.80 expected
- Revenue: $ 3.272 billion vs. $ 2.85 million projected
Net income rose nearly 80 percent, to $ 495.5 million, or $ 4.53, from $ 276.8 million, or $ 3.12 per share, a year earlier.
Excluding items, it earned $ 5.08 per share, well above the $ 1.85 per share expected by analysts surveyed by Refinitiv.
Net sales rose to $ 3.272 billion, up from $ 2.71 billion a year earlier, beating estimates of $ 2.858 billion.
In-store sales, which track in-store sales for at least 12 months, rose 19.2% in the second quarter.
Dick’s has added new products and opened more experiential stores as its sales have picked up strength. He launched a men’s athletics brand, VRST, in March. He opened his largest store to date, called House of Sport, in a suburb of Rochester, New York, in April. The store includes an indoor climbing wall, a green, health and wellness store, and an outdoor track and grass field. And an attempt has been made to take advantage of consumer enthusiasm for pandemic-inspired hobbies, from playing tennis to running in the neighborhood.
Hobart CEO Lauren Hobart credited strong consumer demand, more e-commerce deals and a better experience for athletes for performance.
Dick CEO Ed Stack, who was previously CEO, said the retailer is investing “to re-imagine the experience of athletes in our core business and with new concepts.”
“We said 2021 would be the most transformative year in our history and so far it sure has been,” he said in a press release.
The company now expects its full-year earnings to range from $ 11.00 to $ 11.45 per share and its full-year adjusted earnings to range from $ 12.45 to $ 12.95 per share. .
Based on second-quarter performance, Dick’s said it would increase its capital spending. The company said it planned a special dividend of $ 5.50 per share and would double the repurchases of shares planned for the year to a minimum of $ 400 million.
At the close of Monday, shares of Dick’s Sporting Goods are up around 104% this year. Shares closed 2.33% on Monday at $ 114.39, bringing the company’s market value to $ 10.221 billion.
Read the company press release here.