Merchandise is displayed for sale at a Dick’s Sporting Goods Inc. store in West Nyack, New York.
Craig Warga | Bloomberg | Getty Images
Dick’s Sporting Goods on Tuesday reported a decline in same-store sales of almost 30% for the first quarter, when stores across the country were shut during the coronavirus crisis.
The retailer said e-commerce sales, however, surged 210% since March 18, when its stores were closed, through the end of the first quarter. It said online sales were up 110% for the entire quarter as people stuck at home stocked up on weights, workout clothes and other fitness gear to keep them busy. It also said it got a boost from its curbside pickup service.
Dick’s shares rose 1.5% in premarket trading Tuesday following the release. Its stock is down about 26% for the year.
Dick’s reported a net loss of $143.4 million, or $1.71 a share, for the period ended May 2, compared with earnings of $57.5 million, or 61 cents per share, a year earlier.
Dick’s said net sales fell about 31% to $1.33 billion from $1.92 billion a year ago.
Analysts had been calling for Dick’s to report a loss of 57 cents per share on sales of $1.45 billion, according to Refinitiv data. However, it is difficult to compare reported earnings to analyst estimates for the quarter because the pandemic continues to hit global economies with unique earnings impacts.
The company said it believes its business will benefit as its stores reopen, and “health and fitness will become even more important to the consumer.”
As of the end of last month, about 80% of its stores have reopened, it said.
The company added that through the first four weeks of the second quarter, with 44% of its stores remaining closed on average, consolidated same-store sales fell just 4%.
“As the leader in the sporting goods retail sector, our relationships with key brands have never been stronger and we are in a great place to support this demand,” CEO Ed Stack said in a statement.
Dick’s said it ended the first quarter with $1.5 billion in cash and cash equivalents, and $1.4 billion in outstanding borrowings under its revolving credit facility.
Like many other companies, it is not offering a financial outlook for 2020.