Dick’s Sales Surge as Consumers Snap Up Sporting Goods

(Bloomberg) -- Dick’s Sporting Goods Inc. posted its highest-ever second-quarter sales as shoppers stocked up on sneakers and athletic apparel during the pandemic.

• The key retail metric of same-store sales surged 21% -- more than double the estimate of analysts compiled by Consensus Metrix. Sales and profit also beat analyst’s estimates and were the highest ever for a second quarter.

Key Insights

• CEO Ed Stack said consumers are engaging in more socially distant outdoor activities amid the pandemic. While the outlook remains uncertain, Dick’s is positioned to benefit from increased exercise, he said.
• Sales remain elevated in the current quarter -- but not at the same level as the blockbuster second quarter. In the first three weeks of August, same-store sales were up about 11%, the company said. Executives will speak to analysts about the results and their outlook today at 10 a.m. eastern time.
• The results are another sign of how Covid-19 is creating a divide in the retail world, with grocery stores and big-box chains booming while many specialty and department stores struggle. Heightened demand has created shortages across the U.S. for goods like weights and bikes.

Market Reaction

• Dick’s shares jumped as much as 15% Wednesday in New York, the biggest intraday gain in more than four months. The shares fell 5.7% this year through Tuesday’s close.

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