Dick’s Sporting Goods‘ net income increased on the back of higher sales as students went back to school in the fiscal second quarter.
The company’s net income surged 48 per cent year over year to $362 million as sales grew 7.8 per cent to $3.47 billion.
“From our initial data, we believe that Dick’s is winning more market share in overall back to school and, notably, in general apparel where it is being used more than some other destinations like department stores,” said Neil Saunders, GlobalData MD.
Saunders also attributed the growth to the company’s development of its own private label brands such as DSG and VRST, and its introduction of the House of Sport concept.
“From various qualitative surveys we have conducted at a number of House of Sport locations, we have found that some younger customers are simply coming to hang out,” said Saunders.
“While they may not buy on every occasion, this is still a win as it demonstrates the quality of the experience, and it keeps Dick’s firmly on the radar of the consumers of the future.”
Dick’s raised its full-year earnings per guidance to between $13.55 and $13.90 and forecasted growth range to 2.5 per cent to 3.5 per cent.
