Shares of Dick’s Sporting Goods Inc. are surging in Wednesday premarket trading following the release of a blowout first quarter and raised outlook for the fiscal year.
For the three months ended May 1, the retailer posted profits of $361.8 million, or earnings of $3.41 per share, compared with the prior year’s loss of $143.4 million, or $1.71 per share. On an adjusted basis, it recorded earnings of $3.79 per share, versus Wall Street’s forecasts of $1.12 in earnings per share. Revenues jumped 119% to $2.92 billion, compared with consensus bets of $2.18 billion.
As of 8:45 a.m. ET, DKS stock was up nearly 8.5% to $91.28.
“We are very pleased to deliver another exceptionally strong quarter, achieving record first-quarter sales and our highest-ever quarterly earnings — both significantly exceeding our expectations,” president and CEO Lauren Hobart said in a statement. “The strength of our diverse category portfolio, supply chain, technology capabilities and omnichannel execution helped us continue to capitalize on strong consumer demand across golf, outdoor activities, home fitness and active lifestyle.”
What’s more, the chain saw a resurgence in its team sports business as children began to get back out on the field after a year marred by the delays or cancellations of many youth sports activities. Such movement, Hobart added, delivered a boost to sales.
During the period, Dick’s noted a 115% increase in comps, including a 14% gain in e-commerce. Last year, comparatively, as nonessential retailers kept their doors shuttered for weeks amid the COVID-19 pandemic, the company logged a 110% spike in online sales, but comps at the time decreased 29.5%.
“We are in a great lane right now, and 2021 will be our boldest and most transformational year in the company’s history,” explained executive chairman and chief merchandising officer Ed Stack. “We believe the future of retail is experiential, powered by technology and a world-class omnichannel operating model.”
He added, “Importantly, we are reimagining the athlete experience, both across our core business and through new concepts that we have been working on for the past several years, which will collectively propel our growth in the future.”
For the 2021 fiscal year, Dick’s anticipates adjusted earnings to be in the range of $8.00 to $8.70 per share, with sales between $10.5 billion and $10.8 billion. It ended the quarter with roughly $1.86 billion in cash and equivalents, with no outstanding borrowings under its $1.86 billion revolving credit facility.