The same trends of outdoor living and home fitness that are elevating recreational vehicle retailer Camping World Holdings and home-gym equipment maker Peloton Interactive are unsurprisingly also benefiting Dick's Sporting Goods (NYSE:DKS).
The sporting goods retailer reported third-quarter results Tuesday that came in like a high, hard fastball and blew past analyst expectations.
Hitting it out of the park
Dick's reported revenue jumped 23% to $2.3 billion while adjusted profits nearly quadrupled to $2.01 per share, well ahead of Wall Street's consensus estimates of $2.2 billion and $1.08 per share.
Driving the gains were the positive positioning it has "across golf, outdoor activities, home fitness, and active lifestyle," said chairman and CEO Ed Stark.
President Lauren Hobart, who was also just appointed to succeed Stark as CEO, said the retailer's online sales doubled during the quarter, and it was able to use its stores as fulfillment centers for 70% of those sales. Comparable sales at its brick-and-mortar stores also rose by double-digit percentages.
The insistence on social distancing during the pandemic has led consumers to pursue activities that involve fewer people or greater distances. That's why the RV lifestyle leader Camping World was able to crush analyst expectations this quarter as people took to the road, as did Peloton, which saw sales triple. It's also why Callaway Golf was able to post record sales and earnings.
Because it was on trend, and because Dick's Sporting Goods has a broad cross section of categories under its roof, investors probably should have had an inkling sales and profits would be rising at the retailer as well.