Dive Brief:
- While other retailers battled with a price-sensitive consumer and warmer weather in Q3, Dick’s Sporting Goods CEO Lauren Hobart said on an earnings call Tuesday that none of those things meaningfully impacted the retailer’s financials.
- Net sales were up 0.5% year over year to just over $3 billion as comps rose 4.2%, according to a company press release. Net income in Q3 jumped 13.3% to $228 million.
- As a result, Dick’s raised its full-year comp guidance to between 3.6% and 4.2%, up from 2.5% to 3.5% previously, while net sales are now expected to reach between $13.2 billion and $13.3 billion, up from $13.1 billion to $13.2 billion.
Dive Insight:
Dick’s continued its strong run in Q3, avoiding many of the problems the rest of the industry has struggled with.
The retailer saw customer growth across all income demographics, even as others have noted the price-consciousness of shoppers this season, and CFO Navdeep Gupta said the retailer wouldn’t be heavily impacted by president-elect Donald Trump’s incoming tariffs either, thanks to strong brand partnerships and limited exposure. Although Dick’s pace of growth has slowed, much of that is due to an unfavorable calendar shift, according to GlobalData Managing Director Neil Saunders, and without it Dick’s sales would be up nearly 4%.
“The numbers are especially positive as the weather did not play ball this quarter and the warmer temperatures had a negative impact on the sale of certain outerwear and cold weather categories across the whole market,” Saunders said in emailed comments. He noted that the brand is taking share from department stores, specialty retailers and even the likes of Target, thanks to its strong product assortment and merchandising.
Indeed, Hobart said the retailer has “really been leaning into differentiation across the board” and that its unique product makes the company less vulnerable to discounting. The experiential House of Sport format is also drawing in new brand partners that are then expanding to the rest of the fleet, like Free People’s FP Movement. Gupta added that the company’s private labels — Calia, VRST and DSG — are resonating with shoppers as well, and Dick’s sees opportunity to expand hot brands like Hoka and On to more stores.
Ninety percent of Dick’s locations now have more premium footwear offerings and the retailer is carrying on with its Field House store remodels as well, with 20 of those planned for next year. The Field House revamps take cues from Dick’s House of Sport locations and apply them to regular-sized Dick’s stores.
Those efforts are paying off by improving the customer experience and lifting up sales, according to Saunders.
“Dick’s is only in the foothills of this refresh – which is a positive thing as it means there is plenty of upside for the years ahead,” Saunders said. “In our view, Dick’s is a well-run retailer with a clear strategy and a good track record of executing well. It has thoroughly earned its success.”