Dick’s Sporting Goods grows web sales 15% in Q1
May 19, 2016 02:58 PM
Web sales grew nearly 15% for Dick’s Sporting Goods Inc. in the first quarter ended April 30, a slight slowdown from the nearly 20% e-commerce growth in all of fiscal 2015, the retail chain reported today.
E-commerce accounted for 9.2% of its sales in Q1, up from 8.5% in the same period a year ago. With total sales growing 6.1% in the quarter to $1.660 billion compared with $1.565 billion a year ago, suggesting that online revenue increased 14.8% to $152.8 million from $133.1 million for the quarter.
Same-store sales, which include e-commerce, increased only 0.5%, compared with a 1.0% increase in Q1 2015. Net income fell 10.2% to $56.9 million from $63.3 million.
Dick’s, No. 62 in the Internet Retailer 2016 Top 500 Guide, operates 749 bricks-and-mortar stores as of April 30, after adding five stores in Q1: three Dick’s Sporting Goods stores and two Field and Stream stores.
"We are pleased to have delivered first quarter earnings at the high end of our expectations in a challenging retail environment," CEO Edward Stack said. "The consolidation that is occurring among sporting goods retailers is creating a unique time in the industry. Given the expected near-term liquidation activity in the market, we have adjusted our guidance to contemplate this dynamic. Over the longer term, we remain confident in our ability to aggressively capture displaced market share and to strengthen our leadership position."
Though Stack did not mention other retailers by name, retailers Sports Authority (No. 287) and Sports Chalet have filed for bankruptcy and are selling off their inventory. Sports Authority on May 25 plans going-out-of-business sales at its 450 stores in 27 states; the liquidation sales are set to run through August in stores and online, according to court papers filed Wednesday. Vestis Retail Group LLC, operator of Sports Chalet and outdoor gear retailer Eastern Mountain Sports, which was No. 508 in the Internet Retailer 2015 Second 500 Guide but not listed in the 2016 edition, filed for bankruptcy protection in April. Vestis shut down SportsChalet.com and is closing the 47 stores, but it intends to restructure Eastern Mountain Sports.