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Dick’s Sporting Soars on Revising Guidance One More Time

Published 08/25/2021, 08:26 AM
Updated 08/25/2021, 08:26 AM
© Reuters

By Dhirendra Tripathi

Investing.com – Dick’s Sporting Goods stock (NYSE:DKS) climbed more than 11% in Wednesday’s premarket trading as record earnings in the second quarter led it to revise its guidance again.

Same-store sales rose 19% and net sales rose 21% to $3.27 billion, driven by multiple factors that ranged from more people embracing outdoor workout to greater health consciousness as a result of the pandemic.

The company also reaped benefits from people looking for casual wear rather than office clothes as the pandemic spares them regular trips to the office.

E-commerce sales fell 28% from a year earlier, when most stores were closed because of the pandemic, but were still up 111% from two years ago.

All that helped the company deliver record quarterly earnings that came in at $5.08 per share, well ahead of the $2.83 estimate put out by analysts.

The company now expects to repurchase a minimum of $400 million of its common stock during 2021, double what it previously said.

Dick’s now sees its full-year consolidated same-stores sales rising 18%-20%. The previous target of 8%-11% growth had been in place since May, when it last raised its guidance. It now sees annual EPS between $12.45 and $12.95.

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