Dick’s Shares Rise After Profit Tops Analysts’ EstimatesKevin Orland
Dick’s Sporting Goods Inc. rose the most in seven months after second-quarter profit topped analysts’ estimates, helped by new stores that boosted revenue and increasing private-label sales that widened its margins.
Profit in the three months through Aug. 1 was 77 cents a share, the Coraopolis, Pennsylvania-based company said in a statement Tuesday. Analysts estimated 75 cents. Sales rose 7.9 percent to $1.82 billion.
Dick’s has continued adding locations as many other retailers have slowed or halted their expansion. The sporting-goods chain had 619 of its namesake stores at the end of the quarter, up from 574 a year earlier. The company also is increasing sales of merchandise from its in-house brand, helping its gross margin widen to about 30.4 percent.
The shares rose 3.8 percent to $52.61 at the close in New York, the biggest one-day gain since Jan. 7. Dick’s has gained 6 percent this year.
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