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Dicks Sporting Goods Gain 14.5% After Reporting Record Profit

Updated: 25 Aug 2021

Dicks Sporting Goods (NYSE: DKS) reported second-quarter earnings on Wednesday that saw record profit and sales, exceeding expectations due to strong consumer demand.

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The firm's second-quarter earnings per share reached $5.08 compared to $3.21 a year ago. Net sales increased 20.7% to $3.27bln compared to a year ago and beat the consensus of $2.84bln.

The company also raised its full-year guidance and earnings outlook. Its earnings per share is forecast to be in the range of $12.45 to $12.95, and net sales are predicted to be between $11.52bln and $11.72bln.

Furthermore, a special dividend of $5.50 per share was announced, while the company also increased its quarterly dividend by 21% to $0.4375 per share after a strong quarter. In addition, they plan to repurchase a minimum of $400m shares.

“We said 2021 was going to be the most transformational year in our history, and so far, it certainly has been,” said Ed Stack, Executive Chairman. “I am very pleased with the strength of our business and confident about our growth opportunities.”

Dicks Sporting Goods' share price is currently up 14.52% at $131 pre-market on Wednesday.

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