Sales slide but Dick’s Sporting Goods confident for future
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Dick’s Sporting Goods, one of North America’s leading suppliers of fishing tackle, saw its net sales slide as many of its stores were forced to close due to the COVID-19 pandemic.
However, Edward W. Stack, its Chairman and CEO, said that its strong liquidity position, with cash and cash equivalents of approximately $1.5 billion, and the nature of the business, puts it in a strong position to quickly return to growth.
The group reported a net sales decrease of 30.6% to approximately $1.33 billion and a consolidated same store sales fall of 29.5%, driven by store closures that started on March 15
Stack told investors: “Although the business environment of 2020 remains uncertain, Dick’s Sporting Goods is in a position of strength. We believe coming out of the current crisis, health fitness will become more important to the consumer. As a leader in the sporting goods sector, our relationships with key brands has never been stronger and we are in a great place to support this demand.
“Our experienced management team has a history of successfully navigating difficult market cycles and remains fully committed to managing our business with a long-term view. Perhaps, most importantly, the balance sheet is strong and due to the actions taken when the pandemic first hit, we have enhanced liquidity to emerge from this crisis in an even stronger competitive position.
“Now, with confidence in our liquidity position and our stores reopening, we can turn our attention to gaining market share for the remainder of 2020 and positioning the business for profitable growth in 2021.”
Dick’s reported a 110% increased in e-commerce sales in the first quarter, including Curbside Contactless Pickup, which delivered 39% of the group’s sales during the period, compared to 13% in the same period in 2019.