Dick’s Sporting Goods Rides Online Wave to Q2 Gains
Dick’s Sporting Goods' revenue increased 20.1% year over year in the second quarter ended Aug. 1, reaching $2.71 billion — an increase that the company credited, at least in part, to shoppers focusing on health and fitness at home during the pandemic.
Consolidated same-store sales increased 20.7%, even with approximately 15% of the company's stores closed on average. E-commerce sales, meanwhile, jumped 194%, including curbside contactless pickup. E-commerce penetration for the second quarter of 2020 was approximately 30% of total net sales, compared with approximately 12% during the second quarter of 2019. Second-quarter 2019 consolidated same-store sales increased 3.2%.
"We had an exceptionally strong Q2 in which we delivered our highest-ever quarterly sales and earnings. These results are a testament to the hard work and dedication of our teammates, who reacted quickly to favorable shifts in consumer demand throughout the quarter," said Edward W. Stack, chairman and CEO of Pittsburgh-based Dick's. "During this pandemic, the importance of health and fitness has accelerated and participation in socially distant outdoor activities has increased. There has also been a greater shift toward athletic and active-lifestyle product, with people spending more time working and exercising at home. The majority of our assortment sits squarely at the center of these trends, and while mindful of the uncertainty in the current environment, we are in a great lane right now."
As a result of actions taken to prioritize the health and well-being of its teammates and athletes, the company incurred approximately $42 million of incremental teammate compensation and safety costs during the current quarter. This was partly offset by the recovery of $28 million of inventory write-downs recorded in the first quarter due to the company's strong second-quarter sales. Net income in the second quarter increased about 146% to $276.8 million.
“Our Q2 comps were supported by increases in both average ticket and transactions, as well as growth across each of our three primary categories of hardlines, apparel and footwear,” said Dick's President Lauren Hobar. “By the end of June, we reopened 100% of our stores to the public, while continuing to prioritize the health and well-being of our teammates and athletes."