Why Dick's Sporting Goods Stock Surged This Past Week
Shares of Dick's Sporting Goods (NYSE: DKS) jumped more than 10% over the past week, according to data from S&P Global Market Intelligence, after the retailer doubled its dividend.
Dick's net sales rose 7.3% year over year to $3.6 billion, driven by a 5.3% rise in comparable-store sales. Both metrics topped Wall Street's projections, which had called for revenue of $3.45 billion and comp growth of 2.1%. Dick's is benefiting as more people prioritized health and fitness during the pandemic. The sporting goods retailer is also gaining market share as its less financially sound rivals struggle.
Still, supply chain challenges and inventory overages took a toll on Dick's profit margins. Its adjusted net income, in turn, declined by 27% to $258 million. And its adjusted earnings per share, aided by stock buybacks, decreased by a somewhat more moderate 20% to $2.93. That, too, was better than analysts' estimates, which had called for adjusted per-share profits of $2.88.
Source Fool.com