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- Blockbuster earnings results from Dick's Sporting Goods and Williams-Sonoma suggest the consumer is in good shape.
- Dick's reported Q2 earnings results on Wednesday that blew past estimates and showed robust same-store-sales growth of 19%.
- Williams-Sonoma said its revenues grew 31% in the second quarter and it doesn't expect a slow-down.
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Consumer spending seems to be in great shape if earnings results from consumer discretionary names like Dick's Sporting Goods and Williams-Sonoma are any indication.
Dick's reported blockbuster earnings results that blew past analyst expectations, with the retailer reporting same-store-sales of 19%, well ahead of analyst estimates for 5%. That, combined with a special dividend and favorable outlook, led to the stock surging 13% in Wednesday's trading session.
Meanwhile, Williams-Sonoma said its second-quarter revenue surged 31% and that it is seeing no signs of growth waning. The West-Elm brand of Williams-Sonoma saw the strongest growth, with the luxury home decor shop registering comparable sales growth of 51%.
The strong results from Williams-Sonoma led to the retailer hiking both its outlook and dividend, helping send shares higher by 15% in Thursday trades. And while both companies had easy year-over-year comparables given the pandemic, their 2-year growth rates were also strong.
The solid results point to a consumer that is confident in spending amid the ongoing economic recovery from the COVID-19 pandemic, despite a collapse in consumer confidence earlier this month.
"Recent trends continue to track positively and we are highly encouraged by consumer demand over the rest of the year," Dick's CFO Lee Belitsky said in its earnings conference call.
The bright outlook from management of both consumer discretionary companies ignores the ongoing threat of the COVID-19 delta surge, with daily cases rivaling the record highs seen earlier this year. But for now, consumers seem to be unfazed based on the strong earnings results and demand trends.