
Running Renaissance May Lift Dick’s Annual Footwear Sales Over $2 Billion Mark
Running Renaissance May Lift Dick’s Annual Footwear Sales Over $2 Billion Mark

Senior management at Dick’s Sporting Goods isn't committing to a $2 billion annual footwear sales possibility when asked, but the retailer confirmed momentum in the segment bolstered by growing consumer interest in both running and walking amid the COVID-19 pandemic.
“When people could get out and social distance, they were running. They were walking,” Ed Stack, Dick’s Chairman and CEO, said on a call with analysts. “And that’s what we think is going to continue to be very good for people trying to get out and get in the fresh air and getting in a little bit better shape by either walking or running. We don’t think that’s going to change anytime soon.”
Stack referred to the Pittsburgh-based retailer’s first-quarter footwear business as “very good,” but did not quantify sales. In FY19 ended last December 31, Dick’s footwear revenues represented 21 percent of its topline, or an implied $1,837.6 million. That total was up $150.28 million, or 8.9 percent, from FY18, when footwear represented 20 percent of DKS’ annual revenues or an implied $1,687.32 million.
Over the last year, the retailer has reworked its footwear decks, adding new brands and styles, and introduced its SHOE RUNNER app that offers consumers assistance with the purchasing process whether in-store, online or via a mobile device.
E-commerce growth has risen more than 200 percent at Dick’s since the retailer closed its doors starting in mid-March. It grew 110 percent in the first quarter to account for 39 percent of overall sales versus 13 percent in the year-ago period. Senior management attributes its curbside pick-up service, which accounted for more than 40 percent of those e-commerce orders and eliminated shipping and packaging expense, as a key contributor to its online success. By May 31, 80 percent of Dick’s stores had reopened, with the remainder slated to do so in the second and third quarters.