Dick’s Sporting Goods shares rose on Wednesday after reports that sales increased by 21% in the second quarter, suggesting that Americans may become more active outdoors due to the COVID-19 pandemic.
The retailer’s stock price rose 11% in premarket trading on the sales floor, prompting the company to raise its overall outlook for this year. Sales in the second quarter were very strong, about 45% higher than the same period in 2019, the year before the pandemic spread in the United States.
According to a CNBC cited survey, Dick’s earnings per share rose from the expected US$2.80 to US$5.08, and the revenue forecast rose from US$3.27 billion to the expected US$2.85 billion. Net income increased by nearly 80% to 495.5 million US dollars, compared with 276.8 million US dollars the previous year.
Dick’s better-than-expected performance came after retailers saw a surge in sales throughout the pandemic. After the virus began to spread last year, more and more Americans were forced to work from home, and indoor activities such as going to the gym were restricted. Dick’s buyers surged. As Americans began to develop new hobbies in the outdoors, sales of sports shoes, exercise clothing, and outdoor equipment rose.
in a Press releaseLauren Hobert, Dick’s CEO, expressed his delight at the strong second-quarter results and thanked the company’s employees for their work.
She said: “Our record quarterly sales and revenue have greatly exceeded our expectations, which reflects the continued strong consumer demand in our diverse category portfolio, as well as the advantages of our omni-channel products and enhanced athlete experience. “
Ed Stack, executive chairman of Dick’s, called 2021 a “transformation year” and stated that the retailer will increase investment to “reimagine the athlete experience in our core business and new concepts.”
“We say that 2021 will be the most transformative year in our history, and so far, it must be,” Stark said in the same press release. “I am very satisfied with our business strength and full of confidence in our growth opportunities.”
Although Dick’s sales remain strong during the pandemic, the specter of COVID-19 continues to haunt it. According to the company’s statement, concerns that the virus may cause store closures, supply chain disruptions, new public health regulations or a surge in cases may affect future results.
