Dick's Sporting Goods shares strong Q3, hints at Nike exclusive
Dick’s Sporting Goods shared very strong results from Q3 of 2021, with increases across the board. The sporting goods retailer with a private brand collection most notably posted a 40% increase in sales compared to the third quarter of 2019.
In the earnings call, leadership cited Dick’s own brands such as DSG and Calia as driving exclusivity within the store’s assortment and gaining “meaningful traction.” The company also teased a new partnership coming soon with Nike for exclusive products through the Dick’s mobile app.
“We’ve driven strong growth at Dick’s and earlier this year we launched two House of Sports stores [in Rochester, N.Y. and Knoxville, Tenn.], and our second Public Lands store [Columbus, Ohio] recently opened, focusing on outdoor activity,” said Ed Stack, executive chairman. “Our strategies continue to work as we reimagine the athlete experience in our core business and with new concepts. As we said before, we believe this will be the most transformational year in our history, and we expect to continue this transformation into 2022. I couldn't be more excited about the future of Dick's Sporting Goods."
Net sales for the third quarter of 2021 were $2.75 billion, an increase of 13.9% compared to the third quarter of 2020 and a 40.0% increase compared to the third quarter of 2019. Consolidated same store sales for the third quarter of 2021 increased 12.2%, which followed consolidated same store sales increases of 23.2% in the third quarter of 2020 and 6.0% in the third quarter of 2019. eCommerce sales increased 97% compared to the third quarter of 2019 and 1% compared to the third quarter of 2020.
Dick’s reported consolidated net income for the third quarter ended Oct. 30, 2021 of $316.5 million, or $2.78 per diluted share, driven by strong sales and gross margin rate expansion. The retailer reported consolidated net income for the third quarter ended Oct. 31, 2020 of $177.2 million, or $1.84 per diluted share, which included approximately $48 million of pre-tax expenses in response to COVID-19.
“We are extremely pleased to announce a record third quarter in which we delivered significant sales and earnings growth over both last year and 2019,” said Lauren Hobart, president and chief executive officer. “Consumer demand remained strong, and our differentiated product assortment continued to drive exceptional sales and merchandise margin momentum. I'd like to thank all of our teammates for their hard work and commitment to Dick's Sporting Goods, which helped make this performance possible. Our fourth quarter is off to a strong start, and we are pleased to increase our full year outlook for the third time this year. Looking ahead, we remain very confident in the longer-term prospects of our business."