Dick's Sporting Goods' Shares Rise As Americans Grow More Active

Shares of Dick’s Sporting Goods (DKS) surged Wednesday on reports of 21% sales growth in the second quarter, a sign that Americans may be growing more active outdoors due to the COVID-19 pandemic.

Shares of Dick's grew 11% in pre-market trading. As of Wednesday at 11:11 a.m. ET, shares of Dick's were trading at $133.37, a gain of $18.98, or 16.59%.

Second-quarter sales exceeded those in the same quarter of 2019, the year before the pandemic spread, by about 45%.

Dick’s earnings per share rose to $5.08 from an expected $2.80, while revenue projections rose from $3.27 billion versus an expected $2.85 billion. Net income rose nearly 80% to $495.5 million compared to $276.8 million the previous year.

Dick’s better-than-expected results follow a surge in sales that the retailer has seen throughout the pandemic. After the virus began to spread last year and more Americans were forced to work from home and indoor activities like going to the gym were curtailed, Dick’s saw a surge in buyers. Sales for sneakers, workout clothes, and outdoor equipment went up as Americans began to adopt new hobbies outdoors.

In a press release, Dick’s CEO Lauren Hobert expressed her pleasure with the strong second-quarter results and thanked the company’s employees for their work.

"Our record-breaking quarterly sales and earnings significantly exceeded our expectations, reflecting continued strong consumer demand across our diverse category portfolio along with the strength of our omni-channel offering and elevated athlete experience,” she said.

Dick’s Executive Chairman Ed Stack called 2021 a “transformational year” and said that the retailer would be investing more to “reimagine the athlete experience in our core business and with new concepts.”

“We said 2021 was going to be the most transformational year in our history, and so far, it certainly has been,” said Stack in the press release. "I am very pleased with the strength of our business and confident about our growth opportunities."

The specter of COVID-19 continues to loom large for Dick’s, even as its sales remained strong during the pandemic. According to the company’s statement, concern that the virus could lead to store closures, disruption to supply chains, new public health regulations, or a surge in cases could impact future results.