Industry customer Dick’s Sporting Goods may be one of the biggest retail winners to emerge during the pandemic.
The numbers the retailer continues to post are astonishing, leading Dick’s to believe the business has reached a new level.
Q2 net sales grew 45% vs. the same quarter in 2019.
When it comes to comparable sales, Dick’s continues to post increases even when up against tough comparisons. In Q2 this year, comparable sales (stores plus online) increased 19.2% on top of a 20.7% increase in 2020 and a 3.2% increase in 2019.
And while some retailers have said sales in stores remain soft, Dick’s has not had that problem. Comp sales in brick-and-mortar stores during the quarter increased 36% vs. 2019. E-commerce sales were 111% higher than 2019.
Dick’s VRST line aims to compete with Lululemon Men’s – SES file photo
“We’re now more than 12 months into the significant top-line strength following the reopening of our stores last year,” CFO Lee Belitsky. “A portion of this strength was driven by stimulus payments, but more importantly, we’ve seen a fundamental shift in consumer behavior. The importance of health and fitness has accelerated, participation in outdoor activities has increased and there has been a far greater propensity for athletic apparel and athletic lifestyle products.”
The company added 8.5 million new customers last year, and 2 million new customers in the most recent quarter. Executives said those new customers are sticking around.
All main categories – hardlines, apparel and footwear – are performing well.
Executives made special note of the strong launch of VRST, Dick’s new premium men’s lifestyle apparel brand that it hopes will rival Lululemon Men’s.
The third quarter is also off to a good start thanks to robust sales for back-to-school and the return of team sports.
Business is going so well, Dick’s significantly raised its top and bottom line outlook for the year. Originally, Dick’s had forecast full year sales would rise 22% vs. 2019. Now, it estimates 2021 sales could be 33% higher than 2019. Earnings per share should be 236% higher.
