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Dick’s Sporting Goods has a lot to be thankful for this holiday season.
After a rough second quarter this year that plummeted the company’s stock, Dick’s reported a strong rebound going into the Black Friday weekend, which is hopefully the start to the company’s strongest quarter of the fiscal year.
- Dick’s strategy for the holidays includes an expansion of same-day delivery at its stores, which also serve to help the company’s digital business.
- In Q3, the company added 1.6 million omnichannel customers, a base that is responsible for a majority of Dick’s sales, the company’s president and CEO Lauren Hobart told investors.
“In combination with our stores, our digital experience remains an integral part of our success, and the investments we are making in technology are strengthening our athletes’ omni-channel experience and driving increased engagement,” Hobart said. “As we invest in data science and personalization, we’re excited to continue building one-to-one relationships and better serving these athletes.”
Back to basics: In 2022, Dick’s had to mark down some of its excess inventory in outdoor and apparel in order to match comparable sales in stores. That’s not the case this quarter, as Hobart explained that Dick’s has made a distinct effort to move inventory so there is now space for fresh products.
- As a wholesale retailer, Dick’s, through its annual holiday gift guide, promotes sales on footwear brands such On, Hoka, and New Balance; Peloton Bikes and the accessories that go with it; and its exclusive activewear brands that include Calia, Vrst, and DSG.
“This quarter, we are very happy with the inventory that we’re bringing in,” Hobart said. “And we move decisively to move the product that’s in the stores through to clearance and to outdoor into online channels that we could make room to have an amazing Q4 and amazing holiday season.”
Looking ahead: Although Dick’s rebounded in part thanks to the back-to-school shopping season and is hoping for strong holiday sales to boost Q4, the company’s still taking a cautious approach moving forward. Even though the Dick’s raised its full-year outlook, the company understands that consumers are still in a tough position given the larger macroeconomic climate.
- Part of the company’s growth moving forward will come through its other store concepts, including Dick’s House of Sport, which will open 10 new locations next year and Golf Galaxy, which will also get 10 new spots.
- The company is also experimenting with a new 50,000-square-foot concept store Hobart said is resonating with customers.
“We have a tremendous long-term growth opportunity ahead of us, and we’re making strategic investments that position us well for growth and enable us to continue gaining share in a large fragmented industry,” she said. “These investments include accelerating innovation in our omnichannel athlete experience and expanding our new concepts.”