Dick’s Sporting Goods’ same-store sales drop nearly 30% amid COVID-19

Yahoo Finance’s Heidi Chung joins Zack Guzman to discuss the outlook on retail as Dick's Sporting Goods reports quarterly earnings amid the coronavirus.

Video Transcript

ZACK GUZMAN: Welcome back to live coverage here on Yahoo Finance. We're watching shares of Dick's Sporting Goods rising about 3% here in the afternoon trade. Of course, this morning, they gave their latest earnings update. Disappointing expectations a bit, but noting that the current quarter is off to a strong start. And for more on that and the way that the overall apparel and workout market has shifted here as businesses start to reopen, I want to get to Yahoo Finance's Heidi Chung with more details. Heidi.

HEIDI CHUNG: Hey, Zack. Yeah. So Dick's Sporting Goods reporting this morning. Obviously, it was not immune to the impact of COVID-19. But looking at some key metrics here, they did actually post some good surprises. Loss per share [INAUDIBLE] than expected during the first quarter, net sales falling 31% year over year.

Same store sales falling nearly 30% in the quarter but seeing quite a comeback. Dick's saying through the first four weeks of the second quarter, same store sales decreased only 4%, and that was with about 44% of its stores still closed. Digital sales during the first quarter surging 110%. And since stores closed on March 18, digital sales have skyrocketed 210%. Digital penetration in the first quarter as a percentage of sales totaling 39%. And that compares to just 13% in the same period last year. And first quarter inventory also falling 2.1%. So certainly some good news when we talk about retailers' inventory falling.

And as the end of May, about 80% of its stores have reopened. But you know what companies stock actually hasn't been underperforming the market, Zack? That's Lululemon. I want to point out that this stock hit record highs today, soaring 34% this year and 65% this quarter. All in all, Dick's actually did pretty well, but the stock is still underperforming the broader market.

But Lululemon here are getting some pretty big calls on Wall Street today. We have Bank of America reiterating its buy rating and boosting its price target by $110 to $340 per share. Wells Fargo downgrading the stock. But whichever side you stand on, we are getting Lululemon first quarter results next Thursday, June 11. So it'll be interesting to see how that company fared during all of this.

ZACK GUZMAN: All right. Heidi Chung breaking down the latest there. Appreciate that.