Global Economics

Dick’s Sporting Plummets on Revisions to Guidance

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Dick’s Sporting Goods (NYSE: DKS) stock soared more than 11 percent in premarket trade on Wednesday after the company revised its expectations after posting record earnings in the second quarter. As a result of the flu pandemic, same-store sales jumped 19 percent and net sales rose 21 percent to $3.27 billion, driven by a variety of causes, including an increase in outdoor workouts and heightened health

Because the epidemic prevented them from going to work, many were shopping for casual clothing rather than business attire. When most stores were closed due of the pandemic, e-commerce sales plummeted 28 percent, but were still up 111 percent from two years ago.

Combined, these factors allowed the company achieve a record-breaking quarterly profit of $5.08 per share, well exceeding the $2.83 per share analyst consensus estimate Now, the business aims to acquire at least $400 million of its own stock in 2021, which is more than double what it had originally

As a result of this, Dick’s expects its full-year consolidated same-store sales to rise 18%-20 Growth guidance of 8 to 11 percent had been in place since May, when the company last updated its forecast. As a result, the company’s annual EPS ranges from $12.45