A Dick’s Sporting Goods store
Craig Warga | Bloomberg | Getty Images
Dick’s Sporting Goods stocks rose on Wednesday after the retailer reported 21% sales growth for the second fiscal quarter and raised its outlook for the year.
The stock rose nearly 15% early Wednesday to hit an all-time high of $ 134.80.
The big box retailer’s sales rose during the coronavirus pandemic as customers bought workout clothes, sneakers, golf clubs, and other outdoor gear. Sales in the second quarter were 45% higher than in the same quarter of the previous year.
Here’s what the company did against Wall Street’s expectations for the second quarter ended July 31, based on an analyst survey by Refinitiv:
- Earnings per share: adjusted $ 5.08 versus expected $ 2.80
- Revenue: $ 3.27 billion versus $ 2.85 billion expected
Net income rose nearly 80% to $ 495.5 million, or $ 4.53 per share, from $ 276.8 million, or $ 3.12 per share, a year earlier.
With no items, it made $ 5.08 per share, far more than the $ 1.85 per share expected by analysts surveyed by Refinitiv.
Net sales rose to $ 3.27 billion from $ 2.71 billion a year ago, beating estimates of $ 2.85 billion.
Sales in the same stores that track sales in stores that have been open for at least 12 months increased 19.2% in the second quarter.
Dick’s added new products and opened more experience stores as sales increased. In March, VRST was launched, an athleisure brand for men. It opened its largest store to date, called House of Sport, in suburbs of Rochester, New York, in April. The shop includes an indoor climbing wall, putting green, health and wellness shop – and an outdoor athletics field. And it sought to unlock consumer excitement for pandemic-inspired hobbies, from playing tennis to neighborhood running.
CEO Lauren Hobart praised the strong consumer demand, more e-commerce offerings and a better athlete experience for performance.
Dick’s Executive Chairman Ed Stack, who was former CEO, said the retailer is investing “to transform the athletic experience in our core business and with new concepts”.
“We said 2021 would be the most changing year in our history and it certainly has been,” he said in a press release.
The company now expects full year earnings of $ 11.00 to $ 11.45 per share and total adjusted earnings of $ 12.45 to $ 12.95 per share.
Based on its second quarter performance, Dick’s said it would increase capital spending. The company said it plans a special dividend of $ 5.50 per share and will double its planned share buybacks to at least $ 400 million for the year.
At the close of trading on Monday, Dick’s Sporting Goods shares were up about 104% this year. The stock closed 2.33% to $ 114.39 on Monday, bringing the company’s market value to $ 10.21 billion.
Read the company’s press release here.
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