Dick’s Sporting Goods (DKS) Is Off To A Great Start In 2021

Dick’s Sporting Goods Inc. (NYSE:DKS), founded in 1948, started operating as a small fishing tackle store in New York back. In the 1980s, the children of founder Richard Dick Stack bought the business from their father. In the following decades, the company expanded rapidly to become a leading sporting goods retailer in the U.S. It currently offers a wide range of sports equipment and related accessories across its hundreds of stores spread across the country (see best fitness stocks to buy now).

The company recently announced strong financial results for the first quarter. Dick’s reported earnings of $3.41 per share for the three months ended May 1, compared to a loss of $1.71 per share in the same period of 2020. It earned $3.79 per share on an adjusted basis, crushing analysts’ average estimate of $1.19 per share.

Revenue for the quarter skyrocketed 119 percent to $2.919 billion, topping the consensus forecast of $2.230 billion. Same-store sales jumped 115 percent in the quarter, well above the growth of 71.4 percent estimated by analysts. Dick’s stock made a new 52-week high of $99.90 following the results.

CEO Lauren Hobart expressed her satisfaction with the results. She said in a statement, “We are very pleased to deliver another exceptionally strong quarter, achieving record first quarter sales and our highest-ever quarterly earnings, both significantly exceeding our expectations. The strength of our diverse category portfolio, supply chain, technology capabilities and omni-channel execution helped us continue to capitalize on strong consumer demand across golf, outdoor activities, home fitness and active lifestyle. We also saw a resurgence in our team sports business as kids began to get back out on the field after a year in which many youth sports activities were delayed or cancelled.”

Dick’s also updated its financial outlook for the full year. It expects to report adjusted earnings in the range of $8.00 per share to 8.70 per share, well above its previous guidance between $4.40 per share to $5.20 per share.

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