The retailer’s digital sales rose 194%, including orders that customers placed online to pick up in stores when they were closed. And profits are up a triple-digit percentage from a year ago, in part because the retailer didn’t have to use so many promotions to move high-demand merchandise.
“During this pandemic, the importance of health and fitness has accelerated and participation in socially remote outdoor activities has increased,” CEO Ed Stack said in a statement. “There has also been a greater shift towards athletic and active lifestyle products, with people spending more time working and exercising at home. ”
“The majority of our assortment 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 did in its fiscal second quarter ended August 1, compared to what analysts expected, based on Refinitiv data:
- Earnings per share: $ 3.21, adjusted, vs. $ 1.30 expected
- Revenue: $ 2.71 billion against $ 2.46 billion expected
Net income for the quarter ended Aug. 1 increased about 148% to $ 276.8 million, or $ 3.12 per share, from $ 112.5 million, or $ 1.26 per share, it a year ago.
Excluding one-time charges, Dick’s Sporting Goods earned $ 3.21 per share, more than double the $ 1.30 that analysts expected.
Net sales rose 20.1% to $ 2.71 billion from $ 2.26 billion a year ago, beating expectations of $ 2.46 billion.
Comparable store sales, which track sales in stores that have been open for at least 12 months, increased 20.7%. This was better than the 9.9% expected by analysts polled by FactSet, and up sharply from the 3.2% growth in the same period last year.
Dick’s Sporting Goods said its online sales, which soared nearly 200%, accounted for around 30% of total revenue in the quarter, up from around 12% a year ago.
President Lauren Hobart said the growth was supported by the fact that the average ticket and transactions were on the rise, while sales of clothing and footwear – two of its strongest categories – increased significantly.
The big box retailer is joining Walmart, Target and Best Buy to report remarkable results in recent days, as many mall-based businesses weather the Covid-19 crisis. The most powerful retailers appear to be growing stronger, with the gap widening between the haves and have-nots.
Dick’s Sporting Goods said it had no prospects for the remainder of the year due to the pandemic. He said he has seen some “softness” in key back-to-school categories so far in the current term, as many parents still don’t know what this school year will look like during a global pandemic.
So far, in the first three weeks of its fiscal third quarter, Dick’s Sporting Goods has said comparable store sales have tended to increase by 11%.
The retailer ended the second quarter with $ 1.1 billion in cash and cash equivalents on its balance sheet.
Its inventories are down 12.2% from a year ago.
Dick’s Sporting Goods shares have fallen about 6% this year. The stock has grown about 44% in the past 12 months and has a market value of $ 4.2 billion.
Find the full results press release here.