
Dick’s Sporting Goods in Good Spot Despite Team, B-T-S Softness
Dick’s Sporting Goods in Good Spot Despite Team, B-T-S Softness

Dick’s Sporting Goods reported blockbuster second-quarter results, aided by the acceleration of Americans focusing on health and fitness during the COVID-19 pandemic, as well as pent-up demand, curbside pickup and traction for its private label brands, led by the CALIA and DSG activewear labels.
The omnichannel retailer operates 726 doors across the U.S., all of which had reopened by June 30. Dick’s generated a 20.7 percent increase in consolidated same-store sales for the quarter ended Aug. 1. E-commerce sales rose a whopping 194 percent during the period to account for 30 percent of the retailer’s $2.71 billion in revenues versus 12 percent in the year-ago period. The retailer’s 20 million Scorecard loyalty members account for approximately 70 percent of its sales. Merchandise margins grew 325 basis points, average ticket increased almost 18 percent and the number of transactions were 2.8 percent higher year-over-year. Footwear, apparel and hardgoods sales each rose, but the retailer didn’t specific the percentage gains.
The strong quarterly results, released earlier today, pushed DKS stock price up more than 15 percent in mid-morning trading to a 52-week high of $53.83.
“We’re in a great lane for what’s going on in the U.S. right now,” Chairman and CEO Ed Stack told analysts. He also confirmed that the retailer’s rising fortunes have been bolstered by the likes of fitness and golf products, bikes and boats. Through the first three weeks of the third quarter, DKS’ comps were up 11 percent despite negative impact from soft team sports (except baseball) and Back-to-School (cleats, footwear, backpacks) trends.
“I’m excited where we are at,” Stack added. “We’re fortunate that we have this broader portfolio to rely on with the B-T-S disappointment.” He remains optimistic that Dick’s will have a “big upside” in team sports and B-T-S in 2021 when it’s hoped that most of the COVID-19 impacts will have passed.