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        <title><![CDATA[Dick’s sales jump more than 20 percent on COVID-19 fitness craze]]></title>
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        <lastBuildDate>Wed, 26 Aug 2020 17:05:54 +0000</lastBuildDate>
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            <media:title type="html">Dick’s sales jump more than 20 percent on COVID-19 fitness craze</media:title>
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        <content:encoded><![CDATA[<p>At-home workouts and outdoor athletic activities are shaping up to be good business for Dick&#8217;s Sporting Goods. The retailer&#8217;s second-quarter results easily beat Wall Street&#8217;s expectations as consumers continue to focus on health and wellness while stuck at home amid the coronavirus pandemic.</p><p>“During this pandemic, the importance of health and fitness has accelerated and participation in socially distant, outdoor activities has increased. There has also been a greater shift toward athletic and active lifestyle product with people spending more time working and exercising at home,&#8221; Chairman and Chief Executive Edward Stack said in a statement Wednesday. “The majority of our assortment sits squarely at the center of these trends, and while mindful of the uncertainty in the current environment, we are in a great lane right now.”</p><p>While many consumers are concentrating on traditional exercise equipment during quarantine, Dick&#8217;s merchandise lends itself to various stay-at-home and socially distant activities. The retailer&#8217;s stores are full of items for boating, golfing and climbing.</p><p>For the quarter, Dick&#8217;s earned $276.8 million, or $3.12 per share. Stripping out one-time costs, the Coraopolis, Pennsylvania-based company earned $3.21 per share. That handily topped the $1.24 per share analysts polled by Zacks Investment Research predicted.</p><p>Revenue totaled $2.71 billion, which surpassed Wall Street&#8217;s estimate of $2.51 billion.</p><p>Sales at stores open at least a year, a key gauge of a retailer&#8217;s health, increased 20.7 percent. And online sales skyrocketed, nearly tripling in the quarter.</p><p>The strong performance — which included its highest quarterly sales and earnings ever — was a bit of a surprise to the market, and investors are rallying around the stock, pushing shares up more than 11 percent in morning trading.</p><p>It was only earlier this month that some analysts were predicting that sporting goods retailers, as well as those that sell athletic clothing and footwear, <strong>would likely have a tough go of it</strong> this back-to-school season. The argument was that those retailers might struggle, given that many schools weren&#8217;t planning to reopen for in-person instruction at the start of the school year and some fall sports were not being played.</p><p>But adults and children alike <strong>are eager to keep busy — and keep moving — while quarantining</strong>. Families are now expanding beyond workouts to socially distant activities that everyone can enjoy, like hikes, backyard campouts and fishing. And this works in Dick&#8217;s favor.</p><p>“As a specialist player Dick’s was a clear destination for many shoppers and benefited from having a better assortment and stock levels than generalists, where inventory frequently ran short,&#8221; Neil Saunders, managing director of GlobalData Retail, explained.</p><p>And Dick&#8217;s is looking to keep the momentum going. For the first three weeks of its third quarter, same-store sales are up 11 percent.</p>]]></content:encoded>
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