PITTSBURGH (BRAIN) — Led by e-commerce growth spurred by the COVID-19 pandemic, Dick's Sporting Goods had a record second quarter in sales.
Net sales increased 20% year-over-year for the quarter ending Aug. 1. Net sales were $2.71 billion, with net income rising to $277 million ($3.12 earnings per diluted share), an increase year-over-year of 145%. Non-GAAP earnings per diluted share were $3.21.
E-commerce sales jumped 194% in the quarter, fueled by curbside contactless pickup continuing to be a popular way to shop during the pandemic.
"These results are a testament to the hard work and dedication of our teammates who reacted quickly to favorable shifts in consumer demand throughout the quarter," said Edward W. Stack, chairman and CEO.
"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. 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."
As a result of emphasizing employee health, Dick's reported about $42 million in compensation and safety costs during the second quarter. That was partially offset by the recovery of $28 million in inventory write-downs from the first quarter because of the company's strong second-quarter sales.
The latest earnings report was a rebound from the 2020 first quarter, in which Dick's reported a 30.6% drop in net sales because of temporary pandemic-forced store closures.
Dick's Sporting Goods is traded on the New York Stock Exchange under the DKS symbol. More information: DKS stock quote at Marketwatch.com.
