Business

No Sweat: Dicks Crushes 2Q as Consumers Focus on Fitness

At home workouts and outdoor athletic activities are shaping up to be good business for Dicks Sporting Goods. The retailers second-quarter results easily beat Wall Streets expectations as consumers continue to focus on health and wellness while stuck at home amid the coronavirus pandemic.

While many consumers are concentrating on traditional exercise equipment during quarantine, Dicks merchandise lends itself to various stay-at-home and socially distant activities. The retailers stores are full of items for boating, golfing, and climbing.

“The majority of our assortment sits squarely at the center of these trends, and while mindful of the uncertainty in the current environment, we are in a great lane right now,” Chairman and CEO Edward Stack said in a statement on Wednesday.

For the quarter, Dicks earned $276.8 million, or $3.12 per share. Stripping out one-time costs, the Coraopolis, Pennsylvania-based company earned $3.21 per share. That handily topped the $1.24 per share analysts polled by Zacks Investment Research predicted.

Revenue totaled $2.71 billion, which surpassed Wall Streets estimate of $2.51 billion.

Sales at stores open at least a year, a key gauge of a retailers health, increased 20.7 percent. And online sales skyrocketed, nearly tripling in the quarter.

The strong performance—which included its highest quarterly sales and earnings ever—was a bit of a surprise to the market, and investors are rallying around the stock, pushing shares up more than 15 percent in afternoon trading.

It was only earlier this month that some analysts were predicting that sporting goods retailers, as well as those that sell athletic clothing and footwear, would likely have a tough go of it this back-to-school season. The argument was that those retailers might struggle, given that many schools werent planning to reopen for in-person instruction at the start of the school year and some fall sports were not being played.

But adults and children alike Read More – Source

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