Dick’s Sporting Goods posts record sales as Americans keep splurging on active lifestyles
New shin guards… and a fresh Nike fit. Shares of Dick’s Sporting Goods surged 11% yesterday after America’s largest sporting-goods retailer unpacked big-league results. It notched a record $3.6B in quarterly revenue as same-store sales grew 5% over the holiday quarter (more than double what Wall Street expected). Dick’s said over 80% of its sales growth was driven by footwear, athletic apparel, and team sports merch.
Double or nothing: Dick’s gave a better-than-expected full-year forecast and more than doubled its dividend payout after its third straight year of record sales.
Roster refresh: It added 7M new “athletes” (aka: customers) last year, many of whom were young women. Dick’s said the segment presents a big growth opportunity.
Your one-stop sporting shop… From replacing worn soccer cleats to scoring a Knicks jersey before the big game, Dick's is a sporting go-to. It’s boosted engagement by adding in-store goodies like golf simulators and batting cages, making it more alluring to customers and brands:
Direct to Dick’s: While brands like Nike are trying to sell more directly to consumers (think: Nike’s site), many haven’t ditched Dick’s because it has a huge national presence.
Pricey kicks: Its go-to retailer status lets Dick’s charge more for popular products like Nike Jordans, Hoka sneakers, and Brooks running shoes.
If they “need” it, they will come (repeatedly)… Whether it’s football, golf, or little-league baseball, athletes have to regularly replace their gear. Even in a high-inflation environment, people aren’t likely to sacrifice their active lifestyles or give up the team sports they love. Dick's price variety (think: cleats ranging from $28 to $280) could also appeal to the 20% of consumers planning to trade down to less expensive sporting goods this year.