Dick’s Sporting Goods Inc. shares soared after the company announced plans to reward investors with a special dividend after the company extended its run of record-setting quarters.
The Coraopolis, Pennsylvania-based sporting goods retailer’s board of directors authorized a one-time special payment of $5.50 per share, returning over $475 million to shareholders. The board also hiked the quarterly dividend by 21% to 43.75 cents per share.
|DKS||DICK’S SPORTING GOODS, INC.||138.50||+3.52||+2.61%|
Investors responded positively to the news, driving shares up by as much as 18% on Tuesday to an all-time intraday high of $134.80. At Tuesday’s high, the stock had gained 140% this year and was 699% above its March 2020 low of $16.87.
Dick’s has reported record quarterly results in each of the last five quarters as consumers have stocked up on workout clothes, sneakers and outdoor equipment amid the COVID-19 pandemic.
Net sales in the second quarter surged 20.7% year over year to $3.27 billion, fueling record earnings of $5.08 per diluted share. Same-store sales increased 19.2%.
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Dick’s raised its outlook for the current fiscal year.
The company sees full-year earnings of $11 to $11.45 per diluted share amid annual revenue growth of 18% to 20%.
“We said 2021 was going to be the most transformational year in our history, and so far, it certainly has been,” said chief executive Ed Stack.
View more information: https://www.foxbusiness.com/markets/dicks-sporting-good-stock-booms-as-shareholders-rewarded-with-special-dividend