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Dick's Sporting Goods Shares Up - Online Fuels Earnings Beat

At Dick's Sporting Goods, a near tripling of e-commerce sales helped fuel better-than-expected second-quarter earnings.
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Dick's Sporting Goods  (DKS)  on Wednesday trounced Wall Street's second-quarter earnings expectations, with the sporting-goods retailer reporting e-commerce sales nearly tripled as consumers spent more time exercising at home in response to the coronavirus pandemic.

Shares of the Coraopolis, Pa., company at last check were climbing 11% to $51.99.

For the quarter ended Aug. 1 Dick's reported net income of $276.8 million, or $3.12 a share, up from $112.5 million, or $1.26, in the year-earlier quarter. The latest figure exceeded FactSet's consensus analyst call for $1.26 a share of profit. 

Net sales increased 20% to $2.71 billion, beating FactSet's forecast for $2.46 billion. 

Same-store sales increased 20.7%, even with roughly 15% of the company's stores closed on average. E-commerce sales increased 194%, including curbside contactless pickup.

"During this pandemic, the importance of health and fitness has accelerated and participation in socially distant, outdoor activities has increased," Edward Stack, chairman and CEO, said in a statement.

"There has also been a greater shift toward athletic and active lifestyle product, with people spending more time working and exercising at home."

Dick's Sporting Goods ended the fiscal second quarter with $1.1 billion in cash and cash equivalents and no borrowings outstanding under its $1.86 billion revolving credit facility. Dick's repaid the $1.4 billion of borrowings that were outstanding at the end of the first quarter.

The company said it recently extended its 15% pay premium to workers through the end of the year. Through the first three weeks of the fiscal third quarter, Dick's Sporting Goods said its consolidated same-store sales increased 11%,