Dick’s Sporting Goods runs strong in Q2

Dick’s Sporting Goods on Tuesday hit a home run, posting second quarter results that surpassed analysts’ expectations and lifting its earnings forecast for the year.



Dick's reported net income of $91.4 million for the quarter ended July 30, up from $90.8 million in the year-ago period.



Net sales increased 7.9% to $1.97 billion. Online penetration for the second quarter was 8.5% of total net sales, compared to 7.3% last year. Same-store sales increased 2.8%.



The results were a surprise in that the retailer had previously sounded a very cautious note for the year in light of closeout sales at Sports Authority stores.



"We are pleased with our second quarter results, particularly in light of the liquidation activity in the market," said Edward W. Stack, chairman and CEO. "Looking ahead, we are focused on capturing the displaced market share and remain confident in our ability to strengthen our leadership position.”



Along with its financial results, Dick’s said in its quarterly release that is still reviewing which of the Sports Authority leases it bought it will keep and which it will reject.



The company expects to open approximately 36 new namesake stores and relocate approximately nine Dick’s stores in 2016, along with nine new Field & Stream stores and two new Golf Galaxy stores.