Dick’s Sporting Goods shares rally after Q2 sales shoot up to $3.27 billion

Shares of Dick’s Sporting Goods Inc rallied by nearly 16% after the sporting equipment manufacturer posted a 20.7% sales year-on-year sales growth. Sales grew up to $3.27 billion while net sales grew by 45% compared to Q2 FY19.

The company now expects its profits to range from $11.00 to $11.45 per share and its adjusted profits to be between $12.45 and $12.95 per share.

Demand for athletic goods grew rapidly during the pandemic as cities went under lockdown and forcing Americans to work out at home instead of gyms.

Temporary store closures led to a 28% decrease year-on-year in e-commerce sales but a 111% increase against Q2 FY19.

Net income rose nearly 80% to $495.5 million, or $4.53 share, from $276.8 million, or $3.12 per share, a year earlier.

Same-store sales, which track sales at stores open for at least 12 months, were up 19.2% in the second quarter.

Dick’s shares rose 17% at 9:34 AM ET in the biggest intraday gain since May and the stock has more than doubled this year through Tuesday’s close.

The company also announced a special dividend of $5.50 per share, a 21% increase in the quarterly dividend to $0.4375 per share, and an increase in its planned share repurchases to a minimum of $400 million.

Dick's Sporting Goods' executive chairman, Ed Stack wrote in the company’s press release, “We said 2021 was going to be the most transformational year in our history, and so far, it certainly has been.”

Picture Credits: Penn Live