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Dick’s Sporting Goods Sees Footwear Upside

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The nation’s largest full-line sporting goods chain Dick’s Sporting Goods did not offer specific numbers but confirmed last week that it will continue investing in premium, full-service footwear decks in its stores. In Q3, the retailer’s footwear comparable sales rose 12.2 percent year-over-year with 8.5 percent of the gain attributed to more transactions.

Dick’s senior management says the chain is benefitting from its differentiated assortment, as compared to 2017, and its rising status as a strategic partner of more key brands. Of course, the largest of DKS’ vendor partners is Nike, which it recently struck a partnership with that allows Dick’s and Nike customers to connect their Dick’s Scorecard and Nike membership account through the retailer’s mobile app. The Swoosh relationship will provide Dick’s Scorecard customers with more access to exclusive Nike footwear and apparel launches, events, and specialized offers at the retailer.

“There is some data sharing,” confirmed Lauren Hobart, Dick’s President and CEO. “The Nike database and the Dick’s database have a significant amount of overlap. Nike is going to get specific Nike-only information. And with that data, we plan to work together to create a much more personalized and enriching experience for our combined athletes.”

In 2020, Dick’s has attracted 8.5 million new customers to its Scorecard program and added 1.7 million more this year. A key demographic segment within these loyalty customers is young women, many from urban markets who are shopping the retailer for the first time.

“So, it’s a really good group of new customers. We’re working incredibly hard and passionately to retain them and keep them satisfied,” remarked Hobart.

Dick’s reported strong Q3 results last week, simultaneously raising its full-year comp guidance to an increase of 24-25 percent versus prior expectations of an 18-20 percent gain. The midpoint of updated outlook estimates a full-year sales increase of 39 percent compared to 2019. The retailer also remains “very optimistic” about longer-term EBT (Earnings Before Taxes) margin improvement, citing its differentiated product assortment, more granular management of sales promotions and more profitable ecommerce business as key drivers.