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.
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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.
“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.