Earnings

A Dick’s Sporting Goods store
Craig Warga | Bloomberg | Getty Images

Dick’s Sporting Goods shares rose on Wednesday after the retailer reported sales growth of 21% in the fiscal second quarter and raised its outlook for the year.

Shares were up about 11% in premarket trading.

The big-box retailer’s sales have soared during the pandemic, as customers have bought workout clothes, sneakers, golf clubs and other outdoor equipment. Sales in the second quarter were 45% higher than the second quarter of 2019.

Here’s what the company did for its fiscal second quarter ended July 31 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $5.08 adjusted vs. $2.80 expected
  • Revenue: $3.27 billion vs. $2.85 billion expected

Net income rose nearly 80% to $495.5 million, or $4.53 share, from $276.8 million, or $3.12 per share, a year earlier.

Excluding items, it earned $5.08 per share, far higher 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 earlier, outpacing estimates of $2.85 billion.

Same-store sales, which track sales at stores open for at least 12 months, were up 19.2% in the second quarter.

Dick’s has added new merchandise and opened more experiential stores, as its sales have taken off. It launched a men’s athleisure brand, VRST, in March. It opened its largest store yet, called House of Sport, in a suburb of Rochester, New York in April. The store includes indoor rock climbing wall, putting green and health-and-wellness shop — and a track and turf field outside. And it’s tried to tap into consumers enthusiasm for pandemic-inspired hobbies, from playing tennis to running in the neighborhood.

CEO Lauren Hobart credited strong consumer demand, more e-commerce offerings and a better experience for athletes for the performance.

Dick’s Executive Chairman Ed Stack, who was formerly CEO, said the retailer is investing “to reimagine the athlete experience in our core business and with new concepts.”

“We said 2021 was going to be the most transformational year in our history, and so far, it certainly has been,” he said in a press release.

The company now expects its full-year earnings to range from $11.00 and 11.45 per share and its full-year adjusted earnings to be between $12.45 and $12.95 per share.

Based on its second-quarter performance, Dick’s said it would step up its capital spending. It said it planned a special dividend of $5.50 per share and would double its planned share repurchases for the year to a minimum of $400 million.

As of Monday’s close, Dick’s Sporting Goods shares are up about 104% this year. Shares closed up 2.33% on Monday to $114.39, bringing the company’s market value to $10.21 billion.

Read the company’s press release here.

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