Analyst Note| David Swartz |
Incredibly favorable market conditions and solid execution propelled no-moat Dick’s Sporting Goods to terrific results in 2021’s second quarter. Its sales increased a whopping 45% as compared with 2019’s second quarter. To add some perspective, its adjusted EPS of $5.08 in the quarter exceeded its full-year 2019 EPS by 38%. Clearly, much has changed for Dick’s over the past 18 months, and the firm has capitalized. Still, we are not prepared to conclude that the pandemic has provided it with a sustainable advantage as the intense competition that existed before the crisis has not gone away.