Dick's Sporting Goods Shares Spike On Strong Q2, Raised FY21 Outlook

Dick’s Sporting Goods Inc DKS reported second-quarter FY21 sales growth of 20.7% year-on-year, to $3.27 billion, beating the analyst consensus of $2.82 billion. Net sales increased 45.0% compared to Q2 FY19.
Same-store sales for the quarter rose 19.2%, which followed growth of 20.7% in Q2 FY20 and 3.2% in Q2 FY19.
eCommerce sales decreased 28% Y/Y due to temporary store closures and increased 111% against Q2 FY19.
eCommerce penetration was 18% of net sales in the quarter.
Gross profit increased 39.5% Y/Y to $1.3 billion, with the margin expanding 538 basis points to 39.9%.
The operating margin was 20.3%, and operating income for the quarter rose 69.6% to $663.6 million.
Dick’s Sporting Goods held $2.24 billion in cash and equivalents as of July 31, 2021.
Total inventory at the end of the quarter increased 7.2% Y/Y.
Cash provided by operating activities for the six months totaled $1.03 billion.
Adjusted EPS of $5.08 beat the analyst consensus of $2.70.
Dick’s Sporting announced a special dividend of $5.50 per share, a 21% increase in the quarterly dividend to $0.4375 per share, and an increase in its planned share repurchases to a minimum of $400 million.
Outlook: Dick’s Sporting sees FY21 sales of $11.52 billion - $11.72 billion (prior $10.515 billion - $10.806 billion) versus the consensus of $10.9 billion.
The company expects FY21 adjusted EPS of $12.45 - $12.95 (prior $8.00 - $8.70) versus the consensus of $9.01.
Price Action: DKS shares are trading higher by 12.6% at $128.79 in premarket on the last check Wednesday.

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