Dick's Sporting Goods (DKS -2.23%) touched all the bases in the second quarter, reporting record sales and earnings as consumers increasingly participated in a growing number of outdoor activities during the pandemic.
The sporting goods retailer said it reopened all of its stores during the quarter and saw same-store sales surge 20.7% from the year-ago period despite 15% of its locations being closed on average. E-commerce sales also spiked 194% higher to achieve a 30% penetration rate of total sales, compared to just 12% last year.
Revenue jumped 20% to $2.71 billion, generating $3.21 in adjusted earnings per share, blowing away analyst expectations of just $1.30 per share.
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Chairman and CEO Ed Stack said the pandemic increased consumer awareness of health and fitness needs allowing Dick's to capitalize on the trend. "There has also been a greater shift toward athletic and active lifestyle product with people spending more time working and exercising at home," he said in a company statement. "The majority of our assortment sits squarely at the center of these trends, and while mindful of the uncertainty in the current environment, we are in a great lane right now."
Dick's ended the quarter with $1.1 billion in cash and equivalents and no debt under its credit facilities, though it does have $2.3 billion in long-term operating lease liabilities.
Its solid financial position let it reinstate and pay its dividend without missing a payment, and Dick's will resume repurchasing stock as warranted. The retailer also said it was extending the 15% premium it is paying workers through the end of the year.
While the quarter's momentum is extending into the third quarter, with comps up 11% through the first three weeks, Dick's Sporting Goods is still not providing guidance for the year.