Why Dick's Sporting Goods Shares Are Trading Higher

Shares of Dick’s Sporting Goods DKS hit new 52-week highs on Wednesday after the retailer reported second-quarter earnings.

Shares bottomed in April at $13.46 and have since returned more than 175% for investors.

Dick's Sporting Goods Q2 Results: Growth in e-commerce sales was a highlight in the company's quarterly report.

E-commerce sales were up 194% in the second quarter, including the company’s curbside contactless pickup efforts.

This segment represented 30% of the total sales compared to 12% in the prior year.

Overall sales for increased 20.1% to $2.71 billion. An average of 15% of stores were closed during the quarter. Same-store sales for open locations were up 20.7%.

"We had an exceptionally strong Q2 in which we delivered our highest ever quarterly sales and earnings," CEO Edward Stack said in a statement. 

"During this pandemic, the importance of health and fitness has accelerated and participation in socially distant, outdoor activities has increased." 

Dick’s Sporting Goods saw growth in its three primary categories of hardlines, apparel and footwear. The retailer said it saw an increase in both transactions and average ticket price.

Dick's Sporting Goods Going Forward: The first three weeks of the third quarter have already seen an 11% same-store sales increase, the company said.

This is partially offset by a weakness in some back-to-school categories.

Dick’s Sporting Goods has withdrawn full-year guidance. The company reinstated its quarterly dividend in June.

DKS Price Action: The stock was trading 14.59% higher to $53.48 at last check Wednesday. 

Photo by Mike Mozart via Wikimedia.