With growing competition from JD Sports and other retailers, Dick’s Sporting Goods is expanding its demographic appeal and exploring international markets to maintain its position as a top sporting goods retailer.
The company’s expansion of its apparel wear has also aided foot traffic in stores and increased sales during the past year.
“The efforts Dick’s has made in stepping up its fashion game in terms of both the depth of its offer and its exposure to fashionable brands continue to drive sales,” said GlobalData MD Neil Saunders.
“Even for everyday basics, like underwear, Dick’s is now a go-to destination for a larger cohort of customers, which is helping to drive sales,” he said.
The company saw a 5.2 per cent increase in its net sales from $3 billion to $3.17 billion, a 5.2 per cent increase, in the first quarter of this year.
Its net income dropped by 4 per cent, from $275 million to $264 million, with its comparable sales decreasing from 5.3 per cent to 4.5 per cent.
“Solid growth in underlying comparable sales and an expansion of operating profit show that the company continues to have momentum, even in a more challenging market,” said Saunders.
“Admittedly, comparable growth slowed from last quarter, but there is no cause for concern here as the holiday period was one of exceptional demand and the uplift has simply returned to average levels,” he said.
The company expects its comparable sales to rise between 1 per cent and 3 per cent, with an expected net sales of between $13.6 billion and $13.9 billion over the course of this year.
“It is also the case that the expansion of athleisure brands like Vuori and Alo will likely mean spend is spread a bit more thinly as competition for sports-inspired apparel intensifies,” said Saunders, referring to the company’s muted comparable sales forecast.
Dick’s Sporting Goods is on track to buy Foot Locker in an acquisition that will giving the former access to more locations, increase its international exposure and enable it to tap into a younger demographic.
