Dick’s announces record third quarter and reveals new business leader
Dick’s Sporting Goods has announced a record third quarter performance – and announced a change in leadership on the same day.
The company, a strong player in fishing tackle retail, delivered a 23.2% increase in same-store sales, while achieving its best bricks-and-mortar sales performance since going public nearly 20 years ago. And its ecommerce sales increased 95% compared to same quarter of 2019, representing 21% of total net sales for the quarter, compared to 13% the previous year. Around 70% of online sales were fulfilled by stores.
Dick’s has declined to provide a full-year outlook since March, but goes into 2021 on the back of a strong performance and with a new leader.
Edward Stack, who has been Chairman and CEO since 1984, is to become Executive Chairman. He will be replaced by current President, Lauren Hobart (left), who becomes President and CEO from February 1. Hobart has more than 25 years of finance, consumer and retail experience. She was at Wells Fargo Bank and JP Morgan Chase before spending 14 years at PepsiCo. She joined Dick’s as Chief Marketing Officer in 2011 and became President in 2017.
Hobart takes over as the 850-store company gathers momentum. Dick’s reported consolidated net income for the third quarter of $177.2m, an increase of 207.6% over the 57.6m reported in 2019. Net sales for the third quarter were $2.4b, an increase of 22.9% over 2019.
The storming performance looks set to continue. “The favourable trends in our business have continued into Q4,” said Stack. “Strong sales results have been partially offset by warmer weather that has negatively impacted sales in important cold weather categories. But taken together, though, in the first three weeks of Q4, our consolidated comparable sales have increase in the high teens.”