An employee at the Dick’s Sporting Goods mall in Destiny USA delivers products to a buyer as customers collect goods from retailers offering roadside pickup amid coronavirus disease (COVID-19) restrictions in Syracuse, New York, USA , slacken on May 15, 2020.
Zachary Krahmer | Reuters
Dick’s sporting goods Impressive quarterly earnings and sales growth was seen on Wednesday as consumers searched their website for hiking gear, kayaks, weights, and workout clothes to keep them busy throughout the year Coronavirus crisis.
Its stocks rose more than 16% in pre-market trading.
The retailer’s digital sales rose 194%, including orders customers placed online to collect when stores were closed. And profits were up a three-digit percentage year over year, in part because the retailer didn’t have to use as many promotions to move goods in demand.
“During this pandemic, the importance of health and fitness has increased and participation in socially distant outdoor activities has increased,” CEO Ed Stack said in a statement. “There has also been a greater shift towards sporting and active lifestyle products as people spend more time working and exercising at home.”
“Most of our range is right at the center of these trends … we’re on the right track right now,” he said.
Here’s how Dick’s Sporting Goods performed in its second fiscal quarter ending August 1st, compared to analyst expectations based on refinitive data:
- Earnings per share: $ 3.21, adjusted versus $ 1.30 expected
- Revenue: $ 2.71 billion versus $ 2.46 billion expected
Net income for the quarter ended August 1 increased approximately 148% to $ 276.8 million, or $ 3.12 per share, compared to $ 112.5 million, or $ 1.26 per share, a year ago.
Without a one-time charge, Dick’s Sporting Goods made $ 3.21 per share, more than double what analysts had forecasted $ 1.30.
Net sales increased 20.1% from $ 2.26 billion a year ago to $ 2.71 billion, beating expectations of $ 2.46 billion.
Sales in the same store, which is tracking sales in stores that have been open for at least 12 months, increased 20.7%. This was better than the analysts surveyed by FactSet expected 9.9% and rose sharply from the 3.2% growth in the same period last year.
According to Dick’s Sporting Goods, online sales, which skyrocketed nearly 200%, accounted for around 30% of total sales for the quarter, compared to around 12% a year ago.
President Lauren Hobart said growth will be helped by the fact that average tickets and transactions have increased while sales of apparel and footwear – two of the strongest categories – have increased significantly.
The big box dealer joins Walmart, target and Best buy Notable results have been reported in the past few days as many companies in shopping malls hobble through the Covid-19 crisis. The The strongest retailers only seem to get stronger, whereby the gap between the so-called haves and have-nots is widening.
Dick’s Sporting Goods said it had no prospect for the rest of this year due to the pandemic at this point. It has been said that there has been some “softness” in some key back-to-school categories in the current quarter as many parents are still not sure what this school year will be like during a global pandemic.
In the first three weeks of fiscal third quarter, Dick’s Sporting Goods announced that sales in the same store had increased 11%.
The retailer ended the second quarter with $ 1.1 billion in cash on its balance sheet.
Inventories decreased by 12.2% compared to the previous year.
Dick’s sporting goods are down around 6% this year. The stock is up roughly 44% over the past 12 months and has a market value of $ 4.2 billion.