Facing economic uncertainty, Dick’s Sporting Goods is certain its customers will still turn to sports.
The retailer on Tuesday (March 11) released quarterly earnings showing a 6.4% increase in comparable sales, a company record.
“The convergence of sport and culture in our country has never been stronger, and with a series of major sporting events set to take place in the U.S., this momentum is only expected to grow through 2030 and beyond,” Ed Stack, the company’s chairman, said in a news release.
“As a company rooted in sport, Dick’s is uniquely positioned to seize this opportunity, and we are making strategic investments in real estate, in-store enhancements, and digital experiences to further expand our market share,” he added.
At the same time, Dick’s forecast sales growth of just 1% to 3% for the year, though management said on an earnings call that this was not a reflection of weakness among the company’s customer base.
“We’re coming off a fantastic Q4,” said CEO Lauren Hobart. “Our guidance merely reflects the fact that there’s so much uncertainty in the world today in the geopolitical environment, macroeconomic environment; we are just being appropriately cautious.”
Hobart told analysts that the company is optimistic, in that its customers have in the past shown that they are “leaning in” to outdoor activities and sporting events during times of stress.
“It’s become much more of a necessity than a discretionary item, and it makes sense because it is a way for people to find calm in an otherwise uncertain time frame,” she said.
Looking ahead, Dick’s plans to continue expanding its House of Sports locations after opening seven of these stores in 2024, with the goal of having 75-100 locations by the end of 2027. The company will also focus on its footwear business, noting that its “full-service” footwear “experience” is now available in 90% of it stores.
“We’ll partner with key brands and the athletes and celebrities who resonate most with our customers to enhance our position as the destination for all the on trend shoes both on and off the field,” Hobart said.
On the digital side of the business, Dick’s said its GameChanger platform — which lets customers engage with athletes — now has 9 million unique users, 1.8 million of which were daily active users. The platform also exceeded $100 million in revenue in 2024, with the company projecting that figure to reach $150 million this year.
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