Dick’s Sporting Goods posts best figures for three years
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Dick’s Sporting Goods, which has around 10% of the fishing retail market in the US, yesterday posted its best comparable figures since 2016.
Same store sales were up 3.2% as second quarter net sales rose almost 3.8% to $2.3 billion. A 21% increase in digital sales represented 12% of total sales for the quarter.
Operating income fell 4.6% as growth in selling and administrative expenses outpaced gross profit growth. Net income fell 5.7% to $112.5 million.
Dick’s has been investing in omnichannel growth over the past 12 months. The company has opened up two new e-commerce fulfillment centres to provide faster and more reliable delivery.
Chief Executive Edward Stack said the performance was driven by increases in average ticket products, as well as solid results from hard line merchandise, apparel and footwear.
Following the Q2 results, Dick’s has lifted profit estimates for the full fiscal year and expects a comparable increase in low single digits after a 3.1% decline last year. The estimate takes into account new tariff increases.
Dick’s, which has been impacted by its policy to reduce gun sales, is continuing to review its hunting business, including at its Field & Stream stores which specialise in fishing and the outdoors.
Dick’s is the largest sporting goods specialist retailer in the US, with more than 800 stores. However, it faces increasing competition from mass retailers like Amazon, where fishing is a growing category, and specialty players like Bass Pro and Cabela’s.