At home workouts and outdoor athletic activities are shaping up to be good business for Dick's Sporting Goods. The retailer's second-quarter results easily beat Wall Street's expectations as consumers continue to focus on health and wellness while stuck at home amid the coronavirus pandemic.
"During this pandemic, the importance of health and fitness has accelerated and participation in socially distant, outdoor activities has increased. There has also been a greater shift toward athletic and active lifestyle product with people spending more time working and exercising at home," Chairman and CEO Edward Stack said in a statement on Wednesday. "The majority of our assortment sits squarely at the center of these trends, and while mindful of the uncertainty in the current environment, we are in a great lane right now."
While many consumers are concentrating on traditional exercise equipment during quarantine, Dick's assortment of products lends itself to various stay-at-home and socially distant activities. The retailer's stores are full of items for fishing, golfing and camping.
For the quarter, Dick's earned $276.8 million, or $3.12 per share. Stripping out one-time costs, the Coraopolis, Pennsylvania-based company earned $3.21 per share. That handily topped the $1.24 per share analysts polled by Zacks Investment Research predicted.
Revenue totaled $2.71 billion, which surpassed Wall Street's estimate of $2.51 billion.
Sales at stores open at least a year, a key gauge of a retailer's health, increased 20.7%. And online sales skyrocketed, nearly tripling in the quarter.
Shares surged about 6% before the market open.