Will Dick’s repeat its big win in 2020 this year?
Dick’s Sporting Goods had a record-setting year in 2020 and its stats were impressive.
The retailer posted a 9.9 percent increase in sales for the year on top of 2019’s 3.7 percent gain. Dick’s implemented new tech and services, including curbside pickup, helping ring up a 100 percent increase in online sales. Revenues were not the whole story as the sporting goods retailer also posted earnings of $6.12, a 66 percent improvement over the previous year.
Dick’s performance improved throughout the year after the initial shock of having to close stores due to the pandemic. In-store and curbside pickup were a big part of the chain’s improvement. Sales made online and picked up at stores were up 250 percent last year compared to 2019.
The chain’s stores were key to Dick’s sales efforts with 90 percent of all its revenues connected to its locations. Seventy percent of the chain’s online sales were fulfilled at stores, either via ship-from-store or on-site pickup. Dick’s picked up 8.5 million new customers in 2020.
Lauren Hobart, president and CEO of Dick’s, said that the company is coming into its new fiscal year with “so much momentum” and dedicated to “enhancing our existing strategies to accelerate our core and enable long-term growth.”
Dick’s CEO told analysts on the chain’s earnings call yesterday that it will continue to emphasize its “strategic partnerships with key brands” and plans to “make big bets with important brand partners.”
She also spoke to the growing importance of its owned brands, which topped $1.3 billion in sales during the past year, led by Dick’s DSG and Calia by Carrie Underwood brands. The latter, according to the company, is the second largest seller in women’s athletic apparel behind Nike.
Dick’s is planning a big push in private brands for men this year with the launch yesterday of VRST, an athleisure brand line that includes commuter pants, hoodies, joggers, shorts and t-shirts. Items in the line with sizes from small to XXL will be priced from $30 to $120 and sold in 400 Dick’s stores, online at dickssportinggoods.com and vrst.com.
A CNBC report likens the VRST line to Lululemon’s men’s athleisure line, as opposed to the athleticwear Dick’s sells from brands like Adidas, Nike and Under Armour.
- Dick’s Sporting Goods Inc (DKS) Q4 2020 Earnings Call Transcript – The Motley Fool
- Dick’s Sporting Goods launches its own men’s athleisure line, rivaling Lululemon – CNBC
- DICK’S Sporting Goods Launches “VRST” – An Exclusive, New Men’s Apparel Brand Positioned To Be A First Of Its Kind For The Company – Dick’s Sporting Goods/PRNewswire
DISCUSSION QUESTIONS: Where do you see opportunities for Dick’s Sporting Goods to build on its momentum from 2020 and where do you see challenges that could upset its forward push? Do you think the chain is well positioned for long-term growth?