Dick’s Sporting Goods Inc. reported record earnings and sales in the three months through June amid strong demand for health and fitness products as customers sheltered at home during the COVID-19 pandemic.
The Coraopolis, Penn.-based sporting goods retailer earned $276.8 million, or an adjusted $3.21 per share, recouping $28 million of inventory write-downs recorded in the first quarter. Net sales rose 20% from a year earlier to $2.71 billion.
The results outpaced the adjusted earnings of $1.30 per share and revenue of $2.46 billion that Wall Street analysts surveyed by Refinitiv were expecting.
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“During this pandemic, the importance of health and fitness has accelerated and participation in socially distant, outdoor activities has increased,” CEO Edward Stack said in a statement. “There has also been a greater shift toward athletic and active lifestyle product with people spending more time working and exercising at home.”
Sales at stores opened at least 12 months jumped 21% from a year ago as online sales soared 194%, including curbside pickup. Both average ticket and transactions grew versus last year, as did sales in three primary categories of sporting equipment, apparel and footwear.
About 15% of locations were closed during the quarter.
Dick’s ended the second quarter with $1.1 billion cash and zero outstanding borrowings under its $1.855 billion credit facility.
The company withdrew its 2020 outlook in March due to uncertainty caused by COVID-19 and did not provide an update.
Dick’s shares fell 5.7% this year through Tuesday, lagging the S&P 500’s 6.59% gain.