Dick’s Sporting Goods (NYSE: DKS) published its quarterly financial results on Wednesday that blew past Wall Street estimates for earnings and revenue. The company attributed its hawkish performance to the Coronavirus pandemic that fuelled demand for workout clothes, kayaks, weights, and hiking gear in recent months as people looked for options to stay busy at home.
Shares of the company were reported over 16% up in premarket trading on Wednesday. At a per-share price of £36.80, Dick’s Sporting Goods has now recovered its entire loss in the stock market that it recorded earlier this year due to COVID-19 disruptions.
Dick’s Q2 financial results versus analysts’ estimates
The retail company generated a total of £2.06 billion in revenue versus a much lower £1.87 billion expected, as per Refinitiv. In terms of earnings per share, Dick’s reported £2.44 that was also stronger than 99 pence that analysts had predicted.
At £210.66 million, the retailer’s net income came in 148% higher as compared to £85.62 million in the same quarter last year. Dick’s had swung to £114.37 million of net loss in the prior quarter, as per its Q1 report published in June.
On a year over year basis, its digital sales registered a 194% increase, and profits surged by a triple-digit percentage in the quarter that concluded on 1st August. Dick’s expanded its U.S. footprint with 11 new stores earlier this month.
In the comparable quarter of last year, Dick’s net sales were noted at a much lower £1.72 billion. The Coraopolis-based company said its same-store sales in the fiscal second quarter were 20.7% up on annualised basis. FactSet consensus for comparable-store sales growth, on the other hand, stood at only 9.9%.
