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Dick’s Sporting Goods Sees ‘Highest-Ever Quarterly Sales and Earnings,’ Stock Soars Double Digits

Shares for Dick’s Sporting Goods Inc. are soaring in Wednesday premarket trading on the heels of a second-quarter earnings and sales blowout.

For the three months ended Aug. 1, the retailer’s profits were $281.7 million, or $3.21 per share, on an adjusted basis, compared with market watchers’ forecast of earnings of $1.30 per share. Revenues also climbed 20.1% to $2.71 billion, versus analysts’ bets of $2.46 billion.

As of 8:30 a.m. ET, its stock was up nearly 13% to $52.66.

According to the company, same-store sales rose 20.7%, even as about 15% of its brick-and-mortar outposts were closed on average during the period. E-commerce sales — including those made through its contactless curbside pickup service — surged 194%. (Digital penetration was approximately 30% of Dick’s total net sales, compared with 12% in the prior year quarter.)

“We had an exceptionally strong Q2 in which we delivered our highest-ever quarterly sales and earnings,” chairman and CEO Ed Stack said in a statement. “These results are a testament to the hard work and dedication of our teammates, who reacted quickly to favorable shifts in consumer demand throughout the quarter.”

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Through the first three weeks of its third quarter, Stack said “strong comps” have been “partially offset by softness” across key back-to-school categories due to uncertainties around the timing of students’ return to school and fall team sports. However, same-store sales for the Q3 period thus far have already increased 11%.

“During this pandemic, the importance of health and fitness has accelerated and participation in socially distant, outdoor activities has increased,” Stack explained. “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.”

As of today, Dick’s has reopened its entire fleet of 726 stores to the public. What’s more, the company announced early this month that it was opening 11 stores — four of its namesake chains, one combination Dick’s and Golf Galaxy location, five Dick’s Sporting Goods Warehouse Sale outposts and one Overtime by Dick’s Sporting Goods — in nine states throughout August.

“Our Q2 comps were supported by increases in both average ticket and transactions, as well as growth across each of our three primary categories of hardlines, apparel and footwear,” president Lauren Hobart noted. “As our stores reopened, we saw the power of our industry-leading omnichannel platform. We delivered positive double-digit brick-and-mortar store comps during both June and July.”

The Coraopolis, Pa.-based chain concluded the second quarter with $1.1 billion in cash and equivalents, plus no outstanding borrowings under its roughly $1.85 billion revolving credit facility. (It repaid $1.4 billion in outstanding borrowings at the end of the first quarter.) It did not provide an outlook for the rest of the year.

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