Dick’s Sporting Goods reported soaring second-quarter earnings and sales, with a nearly 200% increase in online revenue, as more consumers bought its goods to stay active during the pandemic. Its results crushed Street estimates.
Net income for the quarter ended Aug. 1 grew roughly 148% to $276.8 million, or $3.12 per share, for the quarter ended Aug.1, compared with $112.5 million, or $1.26 a share, in the year-ago period. Excluding one-time charges, Dick’s Sporting Goods earned $3.21 per share, blowing past the $1.30 that analysts were projecting.
Net sales rose 20.1% to $2.71 billion, beating expectations for $2.46 billion. Same-store sales increased a better-than-expected 20.7%, with growth across the retailer’s three primary categories of hardlines, apparel and footwear.
Online sales jumped 194%%, accounting for about 30% of total net sales during the quarter, compared with about 12% a year ago.
"We had an exceptionally strong Q2 in which we delivered our highest ever quarterly sales and earnings,” said Edward W. Stack, chairman and CEO, Dick’s Sporting Goods. "During this pandemic, the importance of health and fitness has accelerated and participation in socially distant, outdoor activities has increased. There has also been a greater shift toward athletic and active lifestyle product with people spending more time working and exercising at home. 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."
The shifts in consumer demand that drove the company’s strong comps during the second quarter have continued into the third, Stack added, but have been partially offset by softness across key back-to-school categories because of the uncertain timing of a return to school and fall team sports.
“Taken together, through the first three weeks of Q3, our consolidated comp sales have increased 11%, which demonstrates the strength of our diverse category portfolio,” he said.
Dick’s Sporting Goods ended the second quarter of 2020 with $1.1 billion in cash and cash equivalents.