Dick’s Sporting Goods reported on Wednesday second-quarter financial results that topped estimates, as the retailer benefited from strong demand for athletic apparel and footwear.
The sporting goods giant reported a 6.8% increase in net sales to $3.07 billion, just shy of the $3.08 billion analysts had anticipated, according to Refinitiv IBES data.
Comparable store sales increased 6.4%, indicating a continued recovery from the pandemic-driven slump in 2020.
However, the company’s operating profit fell 21.4% to $317.2 million, below the $355.8 million analysts had estimated, due to an increase in inventory shrinkage.
Dick’s reported an inventory shrink of $154 million in the quarter, driven by organized retail crime. The company stated that it is working to improve its inventory management and security measures to mitigate future losses.
Despite the profit shortfall, Dick’s raised its full-year outlook, as it expects ongoing strength in demand for sporting goods and continued progress in its inventory optimization efforts.
The company now anticipates net sales growth in the range of 7% to 9%, up from the previous range of 6% to 8%. It also raised its earnings per share guidance to $12.30 to $12.70, compared to its prior guidance of $11.80 to $12.30.
Edward Stack, chairman and CEO of Dick’s Sporting Goods, said in a statement: .
