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.
Dick’s said it 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.
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
Dick’s second-quarter net income rose nearly 80% to $495.5 million, or $4.53 share, compared with $276.8 million, or $3.12 per share, a year earlier.
Excluding items, it earned $5.08 per share, 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.
Based on its second-quarter performance, Dick’s said it would step up its capital spending. It said it planned a special dividend 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.
