Dicks Sporting Goods Inc. (DKS) stock prices surged by 13.48% shortly after market trading commenced on August 25th, 2021. This brought the price per share up to USD$129.81 early on in the trading day.
DKS Stock’s Net Sales Reports
The second quarter of fiscal 2021 saw DKS stock report net sales in the amount of USD$3.27 billion. This represents a 20.7% increase from net sales reports from Q2 2020 and a 45% increase as compared to numbers from Q2 2019. eCommerce sales were up 111% for the second quarter of fiscal 2021 as compared to the prior year quarter. Q2 2020 saw eCommerce sales 28% higher than the 2021 quarter, despite the prior year quarter including a period of temporary store closures.
DKS Stock’s Net Income Reports
Consolidated net income for Q2 2021 came out to USD$495.5 million, representing consolidated net income in the amount of USD$4.53 per diluted share. This is a substantial improvement from the USD$276.8 million reported for the prior year quarter, representing a net income of USD$3.12 per diluted share. The 2020 quarter included roughly USD$14 million of pre-tax expense in response to the global coronavirus outbreak.
Poised for Continued Success
The company’s record -breaking quarterly sales and earnings for Q2 2021 ended up substantially surpassing previous forecasts. This demonstrated a continuation of strong consumer demand across the company’s portfolio of offerings, as well as the strength of DKS stock’s omni-channel offering and enhanced athlete experience. Based on these developments, the company increased its full year sales and earnings outlook for the second time over the course of fiscal 2021 so far.
Strong Liquidity Position
DKS stock reported a strong balance sheet at the end of the second quarter of fiscal 2021. As of July 31st 2021, the company reported a solid liquidity position of USD$2.24 billion in cash and cash equivalents. The company also reported not having any outstanding borrowings under its USD$1.855 billion revolving credit facility. Concurrently, the company reported an increase in total inventory by 7.2%, as compared to the second quarter of fiscal 2020.
Future Outlook for DKS Stock
The company reported a promising financial quarter, rife with opportunities for further development and growth. DKS stock is keen to leverage the resources at its disposal to usher in significant and sustained increases in shareholder value. Investors are hopeful that management will be able to effective leverage the resources at their disposal to continue the company’s trajectory of success.