Dick’s Sporting Goods’ third-quarter 2024 earnings results exceeded analyst expectations and demonstrated continued momentum as the back-to-school season transitioned into the holiday shopping period.
During an earnings call Tuesday (Nov. 26), executives credited strategic initiatives, strong team execution and an omnichannel approach for the company’s continued momentum, despite headwinds from a challenging macroeconomic landscape. Behind-the-scenes elements like payments innovations, supply chain logistics, experiential strategies and other process and inventory optimizations ensure seamless shopping experiences.
“Providing differentiated on-trend products helps make Dick’s the go-to destination for sport in the U.S.,” Dick’s President and CEO Lauren Hobart told investors during the call.
“We believe our differentiated product, quality service and powerful omnichannel experience will resonate well with our athletes this holiday season,” she said in an earnings press release.
Executive Chairman Ed Stack added in the release: “We continue to make strategic investments such as our House of Sport and Dick’s Field House concepts, where we are redefining sports retail and creating strong engagement with our athletes, brand partners and communities that will fuel our long-term growth.
Among the headwinds are inflation, elevated interest rates and geopolitical tensions, which could disrupt supply chains and consumer spending. However, the company expressed confidence in its resilience and ability to adapt. It expects same-store sales for the rest of the year to grow between 3.6% and 4.2%, up from a previous range of 2.5% to 3.5%.
Read also: Retailers Exercise Data Readiness Muscle to Boost Holiday Spend and Customer Loyalty
The physical retail store isn’t dead; it’s evolving. At the heart of Dick’s growth strategy is a commitment to enhancing customer experience online and in-store. The company accelerated the rollout of experiential retail locations, including its House of Sport concept stores, which feature batting cages, rock climbing walls and other interactive elements designed to draw consumers into the store and deepen engagement with the brand.
Dick’s recorded net sales of $3.06 billion for Q3 and notched comparable sales growth of 4.2%.
Executives said during the call that elements underpinning Q3 success included a continued emphasis on technology, omnichannel capabilities and private-label brands; a differentiated and curated product assortment that resonates with consumers and sets the company apart from competitors; strong execution by the team in online and offline channels; and high-quality service that enhances customer loyalty and supports the company’s ScoreCard program, which has over 25 million active members generating 70% of sales.
“It’s all about helping customers get in, get out, and get it right faster, smoother and more reliably than ever before,” Radar CEO and co-founder Nick Patrick told PYMNTS this week about the retail sector more broadly, adding: “Geolocation is at the heart of delivering the right message or feature at the right time.”
See also: Why Location Is Personalization’s Superpower for Merchants
Dick’s is also expanding its retail footprint with retail formats such as House of Sport, Field House, and its GameChanger platform, a proprietary mobile app for youth sports.
Despite these moves, Dick’s faces a broader unforgiving retail backdrop. Rising borrowing costs and inflationary pressures have prompted many consumers to tighten their belts, particularly on discretionary categories like apparel and sporting goods.
Still, Dick’s remains the largest player in the U.S. sporting goods sector. Its store openings in Q3 included five new House of Sport locations, 11 Field House sites and two Golf Galaxy Performance Centers.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More