After closing the books on a record quarter and an unprecedented but uneven year, DICK’S Sporting Goods said on Tuesday (March 9) that forecasting 2021 was better compared to 2019 rather than the one-of-a-kind, pandemic-roiled span of 12 months that just ended.
“Due to the uneven nature of sales and earnings in 2020, [DICK’S] planned 2021 off of a 2019 baseline, and for the same reason believes it is important to compare 2021 against both 2019 and 2020,” said a company statement.
The statement came after the operator of 728 retail locations in 47 states wrapped up a record year, where same-store sales rose almost 10 percent and eCommerce sales rose 100 percent. The retailer projected that it sees 2021 comparable store sales in a +2 percent to -2 percent range, targeting net sales for this year at $9.5 to $9.9 billion. “We’ve never had a year quite like 2020,” said Executive Chairman and CMO Ed Stack.
As far as its most recent quarter that ended Feb. 1, DICK’S said net sales rose 20 percent to $3.1 billion on a 57 percent increase in its online business, which accounted for about one-third of its sales. On the bottom line, the company reported a threefold increase in Q4 net income of $219.6 million versus a year ago, despite spending an additional $51 million in compensation for its 50,000 employees and safety costs related to COVID-19.
The Shifting Consumer
To be sure, the “athleisure” lifestyle changes brought on by the coronavirus saw more people wearing sweats, yoga pants and sneakers than ever before, while also affording consumers more time to work out and take part in outdoor activities.
“We are very pleased with our strong fourth-quarter sales and earnings results,” said Lauren Hobart, president and CEO. “The strength of our diverse category portfolio, technology capabilities and advanced omnichannel execution once again helped us capitalize on the favorable shifts in consumer demand across golf, outdoor activities, home fitness and active lifestyle.”
In February, the company announced it was opening five new locations in five states, as it doubled down on the omnichannel cohesion of stores and eCommerce. DICK’S noted that 70 percent of its order were fulfilled by brick and mortar stores, and that it sees its traditional retail and online units as one.
Strategy Acceleration
DICK’S has benefited from the demise and bankruptcy of some of its competitors, such as Golfsmith and Sports Authority, which it acquired five years ago. It is also now in a position, as a thriving anchor tenant in malls, to command better rent and construction concessions from landlords, as well as a willingness to relocate stores to better locations.
“It’s clear that our strategies over the past several years are working and have set us up for long-term success,” Hobart said. “As we enter 2021, our business has so much momentum, and we have been pleased with our start to the year. Our focus in 2021 will center around enhancing our existing strategies to accelerate our core and enable long-term growth.”
DICK’S currently has a market value of $6.8 billion and has seen its shares rise about 120 percent over the past yea
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