With many gyms closed by the coronavirus pandemic, homebound Americans spent the summer buying new bicycles, golf clubs and treadmills—boosting sales at one of the few chains that sells them all, Dick’s Sporting Goods Inc. DKS 15.68%
The sporting-goods retailer said its e-commerce sales nearly tripled in the quarter ended Aug. 1, offsetting temporary store closures and more than doubling Dick’s profit from a year ago. But executives said uncertainty around the return to school and fall team sports is weighing on its sales in the current quarter.
Shares of Dick’s jumped 14% in Wednesday afternoon trading.
The company is facing inventory constraints in some categories, Chief Executive Ed Stack said. “If you’re going to walk in our store, it’s still going to look like our fitness business is really depleted,” Mr. Stack said. “But the flow product we have coming in is kind of going out as fast as it’s coming in.”
Like other big-box retailers, Dick’s used digital orders to drive sales amid the pandemic, with online and curbside orders comprising about 30% of second-quarter sales. Dick’s had roughly 12% in e-commerce penetration for the same period last year.
Executives said they expect the curbside service to stay for the long term, especially since they don’t see customers feeling comfortable walking into crowded stores during busy shopping periods such as Christmas.
“It’s been a fundamental shift in consumer behavior,” President Lauren Hobart said. “We anticipated originally that we would see a large drop off [in curbside orders] when the stores reopened, but that is not the case.”
Same-store sales, which include those at stores that were temporarily closed due to Covid-19, rose 20.7% for the quarter. All stores reopened by the end of June.
Retailers and the Pandemic
- Big-Box Stores, Worried About Amazon, Were Ready for Coronavirus (Aug. 24)
- Retailers See E-Commerce Investments Pay Off Big as Coronavirus Keeps Shoppers Home (Aug. 19)
- Coronavirus-Hit Retailers Create New Curbside Shopping Experiences (July 14)