Dick's Sporting Goods Sales Skyrocket 194% in Second-Quarter | Financial Buzz

Dick’s Sporting Goods Sales Skyrocket 194% in Second-Quarter

Dick’s Sporting Goods (NYSE: DKS) reported a rapid sales growth in its second-quarter results on Wednesday. The company emphasized that consumers had relied on its website to order hiking gear, kayaks, weights and workout clothes in order to stay active amid the coronavirus pandemic. Shares skyrocketed 12% during premarket trading. 

Online sales shot up 194%, including orders made online for curbside pickup, when its locations were closed to the public. Additionally, profits grew by a triple digit percentage compared to the previous year, partly due to the reduced spend in promotions, as merchandise was very in demand. 

“During this pandemic, the importance of health and fitness has accelerated and participation in socially distant, outdoor activities has increased,” Chief Executive Ed Stack said in a statement. “There has also been a greater shift toward athletic and active lifestyle products with people spending more time working and exercising at home.” 

“The majority of our assortment sits squarely at the center of these trends,” he added. “We are in a great lane right now.” 

The company reported earnings of USD3.21 a share in comparison to the anticipated USD1.30 per share. Revenue amounted to USD2.71 Billion compared to the USD2.46 Billion predicted. Furthermore, net income surged 148% to USD276.8 Million or USD3.12 a share in comparison to the previous year’s USD112.5 Million or USD1.26 per share. 

According to Dick’s, its online sales were responsible for about 30% of total revenue, a jump from the former year’s 12% contribution.