Dick’s Sporting Goods delivers record net sales and earnings in 2020
Major US supplier of fishing tackle, Dick’s Sporting Goods, reported a Q4 increase in same-store sales of 19.3% as the giant retailer continued to benefit from the surge in outdoor activities.
However, its new President and CEO, Lauren Hobart, told investors that she did not expect that performance to be repeated, predicting a Q1 performance that will range from a loss of 2% to a 2% increase.
Net sales in the fourth quarter rose 19.8%, topping analysts’ estimates of $3.13 billion. E-commerce sales increased by 57%, accounting for 32% of the Q4 sales.
For the full year, net sales increased 9.5% to approximately $9.8 billion. Consolidated same store sales increased to a record 9.9% despite temporary store closures during March, April and May. E-commerce sales increased 100% with net income totaling $530.3 million.
“We are very pleased with our strong fourth quarter sales and earnings results,” said Hobart. “The strength of our diverse category portfolio, technology capabilities and advanced omni-channel execution once again helped us to capitalise on the favourable consumer demand across golf, outdoor activities, home fitness and active lifestyle.
“As we enter 2021, our business has so much momentum and we have been pleased with the start of the year. Our focus will centre around enhancing our existing strategies to accelerate our core businesses and enable long-term growth.”
“We have never had a year quite like 2020. We were challenged in numerous ways – as were many others – but as an organisation we not only survived. We thrived, delivering record-setting sales and earnings,” added Ed Stack, Executive Chairman and Chief Merchandising Officer. Most importantly, we cared for each other and our communities every step of the way.
“We prioritised the health and safety of our team-mates and athletes and invested in our frontline hourly store and distribution centre team-mates through our premium pay programme. Additionally, to help kids get back on the field, we donated $30 million to our Foundation to support Sports Matter (sportsmatter.org) and other charitable programmes within the communities we serve.”