Benzinga | Aug 25, 2021 09:28AM EDT

Dick's Sporting Goods Shares Spike On Strong Q2, Raised FY21 Outlook

* Dick's Sporting Goods Inc (NYSE:DKS) reported second-quarter FY21 sales growth of 20.7% year-on-year, to $3.27 billion, beating the analyst consensus of $2.82 billion. Net sales increased 45.0% compared to Q2 FY19.

* Same-store sales for the quarter rose 19.2%, which followed growth of 20.7% in Q2 FY20 and 3.2% in Q2 FY19.

* eCommerce sales decreased 28% Y/Y due to temporary store closures and increased 111% against Q2 FY19.

* eCommerce penetration was 18% of net sales in the quarter.

* Gross profit increased 39.5% Y/Y to $1.3 billion, with the margin expanding 538 basis points to 39.9%.

* The operating margin was 20.3%, and operating income for the quarter rose 69.6% to $663.6 million.

* Dick's Sporting Goods held $2.24 billion in cash and equivalents as of July 31, 2021.

* Total inventory at the end of the quarter increased 7.2% Y/Y.

* Cash provided by operating activities for the six months totaled $1.03 billion.

* Adjusted EPS of $5.08 beat the analyst consensus of $2.70.

* Dick's Sporting announced a special dividend of $5.50 per share, a 21% increase in the quarterly dividend to $0.4375 per share, and an increase in its planned share repurchases to a minimum of $400 million.

* Outlook: Dick's Sporting sees FY21 sales of $11.52 billion - $11.72 billion (prior $10.515 billion - $10.806 billion) versus the consensus of $10.9 billion.

* The company expects FY21 adjusted EPS of $12.45 - $12.95 (prior $8.00 - $8.70) versus the consensus of $9.01.

* Price Action: DKS shares are trading higher by 12.6% at $128.79 in premarket on the last check Wednesday.