Dick’s Sporting Goods scores highest same-store sales
Dick’s Sporting Goods is staying active during a pandemic. The chain said it scored a record-setting performance in comparable store sales for the third quarter, driven in part by its private brands strategy, and it hinted at a new outdoor store concept called Public Lands.
For Q3, the chain reported a 23.2% increase in same-store sales for the quarter ended Oct. 31, a new high, that helped drive an increase of 22.9% in net sales and $2.41 billion for the quarter.
"Our stores continue to be the hub of our industry-leading omni-channel platform and were the key to our unprecedented third quarter growth,” said Lauren R. Hobart, president of the Pittsburgh-based chain. “Brick-and-mortar store comps grew double-digits, and our stores fulfilled approximately 70% of our online sales, which increased nearly 100% for the quarter. In fact, our stores drove 90% of our total Q3 sales growth, whether an athlete purchased at the register, picked up curbside or had their order delivered through ship-from-store. Data science and technology will continue to play an important role in creating a personalized, one-to-one relationship with our athletes, enabling us to serve them in the most convenient way possible."
Digitally, Dick’s saw e-commerce sales increase 95% during the third quarter, compared to a year ago.
Edward Stack, CEO and chairman of the board at Dick’s Sporting Goods, said sales of its store brands, referred to by the company as “vertical brands,” out-performed the company average by more than 1,000 basis points. “These vertical brands have clear DNA and specific consumer targets for which we control everything including design, supply chain, and marketing,” he said in a transcript of its recent call, adding that the women’s brand Calia has become the second largest women's brand in the company, and the DSG brand, which spans men's, women's and new therapeutic apparel as well as hardlines categories, has become its largest vertical brand in just a year.
Lee Belitsky, executive vice president, chief financial officer at the company, echoed the sentiments around the sporting goods store’s private brands, saying they have higher gross margin than the national brands.
During the call, Dick’s also previewed work being done around a new outdoor concept store called Public Lands, opening two stores in 2021. The locations will replace Field & Stream stores that Dick’s operates. Stack said the concept is focused on the importance of protecting public lands and the environment, aiming at categories like camping, hiking, biking, kayaking, fishing, ways consumers get out and enjoy their public lands.
Dick’s operates 732 namesake stores, as well as owns and operates Golf Galaxy and Field & Stream locations.