Dick’s Sporting Goods is getting a hand from Carrie Underwood.
Shares of the company, which has an exclusive brand with the singer, rose as much as 6.2 percent in morning trading after topping its second-quarter profit estimates.
Edward Stack, chairman and chief executive officer, crowed about the company’s women’s business and singled out its exclusive private brand, Calia by Carrie Underwood on a conference call with analysts.
“This brand has performed better than expected and we continue to believe it will become our number-three women’s athletic apparel brand by the end of 2016,” Stack said.
The sporting goods retailer delivered earnings of 77 cents per share for the quarter, better than the company’s guidance of 73 to 76 cents per share as well as the 75 cents analysts projected. Net income rose 30.8 percent to $90.8 million from $69.5 million.
At noon, the stock had settled some, and was up 1.9 percent to $51.67, giving the retailer a market capitalization of $6.1 billion.
Revenue though was a little light, rising 7.9 percent $1.82 billion, where analysts had expected a top line $1.83 billion. (Overall, apparel makes up about 36 percent of the company’s business.)
E-commerce accounted for 7.3 percent of the company’s net sales, or about $127 million.
Dick’s projected third-quarter earnings 45 cents to 48 cents per share, which would top the 41 cents logged a year ago. The firm also modestly increased its EPS guidance for the year, to a range of $3.13 to $3.21 from the $3.12 to $3.20 previously projected.