Here’s a retailer that’s had a good second quarter!
Dick’s Sporting Goods, Inc., the American Sporting Goods retailer, has recorded its highest-ever Q2 sales – all thanks to shoppers who have amassed athletic apparel apparels and sneakers while at home.
The net sales jumped by 20.1 per cent to clock US $ 2.71 billion from US $ 2.26 billion earned during the second quarter of last year.
That’s a good jump from what analysts too had expected (US $ 2.46 billion).
Ed Stack, Chief Executive, believes many people have started working out during the pandemic and that’s helping the sale of its products.
Demands for hiking gears and workout apparels have been surging on retailer’s website. And so it’s not surprising to see its digital sales shoot up by 194 per cent during the quarter ended 1 August. That’s 30 per cent of total revenue during the second quarter.
Net income too surged by a whopping 148 per cent to US $ 276.8 million in the second quarter, compared to US $ 112.5 million a year back.
The same-store sales rose by 20.7 per cent – yet again exceeding analysts’ estimate of 9.9 per cent (polled by FactSet).
Notably, in the first 3 weeks of Q3, same-store sales are trending up 11 per cent.
Meanwhile, Dick’s refused to give any outlook for the remaining year as it sees some ‘softness’ in back-to-school categories in this quarter, with many parents still unsure of when schools will reopen.
Dicks, which is the largest sporting goods retailer in the US, has around 850 stores and generated revenue of US $ 8.43 billion in 2018.
