DICK’S Sporting Goods Shares Jump After Record Quarterly Sales in Second Quarter 2021

Aug 25, 2021 By MarketDepth

Business Investing What's Hot

DicksSportingGoodsstore

DICK’S Sporting Goods, Inc. (NYSE: DKS) shares jumped about 14% on Wednesday after the sports retailer reported sales and earnings results for the second quarter ended July 31, 2021. The Company, together with its subsidiaries, provides hardlines, including sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear products; apparel; and footwear and accessories.

image 1
Dicks Sporting Goods Stock Jumps
Increase in Sales

The sports retailer indicated in the report that net sales for the second quarter of 2021 were $3.27 billion, an increase of 20.7% compared to the second quarter of 2020 and a 45.0% increase compared to the second quarter of 2019. Consolidated same store sales for the second quarter of 2021 increased 19.2%, which followed consolidated same store sales increases of 20.7% in the second quarter of 2020 and 3.2% in the second quarter of 2019. 

eCommerce Booming

eCommerce has played a major role in increasing sales for the store. eCommerce sales increased 111% compared to the second quarter of 2019 and as planned, decreased 28% compared to the second quarter of 2020, which included a period of temporary store closures. eCommerce penetration has grown from 12% of total net sales in the second quarter of 2019 to 18% for the second quarter of 2021. eCommerce penetration was approximately 30% in the second quarter of 2020.

 “I am very pleased with the strength of our business and confident about our growth opportunities.”

Ed Stack, Executive Chairman

“We said 2021 was going to be the most transformational year in our history, and so far, it certainly has been. We continue to perform at a very high level and invest in our future to reimagine the athlete experience in our core business and with new concepts,” said Ed Stack, Executive Chairman. “I am very pleased with the strength of our business and confident about our growth opportunities.”

“Based on the strength of our business and our expectations for continued strong consumer demand, we are pleased to increase our full year sales and earnings outlook for the second time this year.”

Lauren Hobart, President and Chief Executive Officer

“Our record-breaking quarterly sales and earnings significantly exceeded our expectations, reflecting continued strong consumer demand across our diverse category portfolio along with the strength of our omni-channel offering and elevated athlete experience. I’d like to thank all our teammates for how they delivered against our core strategies and for their commitment to DICK’S Sporting Goods, which helped make this performance possible,” said Lauren Hobart, President and Chief Executive Officer. “Based on the strength of our business and our expectations for continued strong consumer demand, we are pleased to increase our full year sales and earnings outlook for the second time this year.”

Increased Cash Position

The Company ended the second quarter of 2021 with approximately $2.24 billion in cash and cash equivalents and no outstanding borrowings under its $1.855 billion revolving credit facility.