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Is Sporting Goods a Clear Pandemic Winner?

Written by Tom Ryan

Photo: Dick's Sporting Goods

Sporting goods is increasingly solidifying its position among the “pandemic winners,” with sales for the three major publicly held chains, Dick’s Sporting Goods, Academy Sports and Hibbett Sports, remaining well-above pre-pandemic levels. Sales for the channel surged early in the pandemic as people embraced outdoor activities, including biking, hiking, hunting, golf and running, at a time when they were largely confined to their homes. Since then, team sports have rebounded strongly after initially facing pandemic-related cancellations. Another growth contributor has been people embracing active lifestyles amid heightened health awareness tied to the pandemic. Sales growth in the sporting goods vertical was expected to be challenged in 2022 as people returned to socializing and other pre-pandemic activities. Still, sales have re-baselined at significantly higher levels versus 2019 as many Americans — though not all — have stuck with the outdoor habits they discovered or rediscovered during the pandemic and continued to prioritize exercise. According to 2022 results:
  • Dick’s sales inched up 0.6 percent year-over-year and are up 41.3 percent versus 2019;
  • Academy’s sales declined 6.4 percent year-over-year but grew 32.4 percent versus 2019;
  • Hibbett’s same-store sales decreased 2.2 percent in 2022 but vaulted 41 percent compared to 2019.
Each chain's progress also reflects internal transformation efforts set before the pandemic. Academy made investments in inventory management and localization. Hibbett heightened its focus on fashion. Dick’s believes it has become more differentiated with improved allocations and new in-store experiential elements such as batting cages and golf simulators. For the current year, modest growth at best is expected. Comp predictions range from negative two percent to positive one percent for Academy, flat to positive two percent for Dick’s and low-single digits for Hibbett. On quarterly calls, officials expressed confidence that consumers would continue to invest in their newfound active pursuits and lifestyles to help offset inflationary and economic pressures. “What we’re finding is that people are prioritizing health and wellness and active lifestyle, team sports… they’re even more popular than they were before the pandemic,” said Lauren Hobart, Dick’s CEO, on Dick’s call. “People really have decided with whatever they have in their wallet, they’re prioritizing these categories. They’re coming to life more as necessities rather than discretionary.”

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