Q3 web sales jump by nearly a third at Dick’s Sporting Goods
November 15, 2016 10:28 AM
Web sales came on strong for Dick’s Sporting Goods Inc. in the retailer’s fiscal third quarter that ended Oct. 29.
Dick’s reported today that e-commerce accounted for 9.6% of net sales of $1.810 billion in the third quarter, versus 8.0% of $1.643 billion during the same period a year ago. That translates into online sales of about $174 million in the recent quarter, an increase of 32.8% from roughly $131 million in the prior-year period. Web sales accounted for just over a quarter of the sales growth for Dick’s in the third quarter.
For the first nine months of the fiscal year, online sales are up by more than 24% to $494 million from $397 million during the same period last year. For all of fiscal 2015, Dick’s, No. 62 in the Internet Retailer 2016 Top 500, increased online sales by 19.5% to $784.9 million, according to Internet Retailer’s Top500Guide.com.
“Our e-commerce sales will be just under $1 billion this year and we believe there is meaningful opportunity for future growth,” chairman and CEO Edward W. Stack told analysts today, according to a transcript provided by SeekingAlpha.com.
Stack said Dick’s has forged an agreement in principle to become the technology provider to the nonprofit Little League Baseball. He said that will give the 2.1 million coaches, players and administrators associated with Little League access to the Dick’s Team Sports HQ website the retailer launched in January where they can customize and order uniforms and gear.
Bolstered by the demise of competitor The Sports Authority, Dick’s Sporting Goods reported today an increase of same-store sales of 5.2% in the third quarter and projected an increase in comparable sales, which includes e-commerce, of between 3% and 6% in the fourth quarter.
Dick’s paid $15 million in June to acquire Sports Authority’s web domain and other intellectual property assets. A click on SportsAuthority.com today takes a consumer to the Dicks.com e-commerce site.
For the three months ended Oct. 29, Dick’s Sporting Goods reported:
- Net sales of $1.810 billion, an increase of 10.2% from $1.643 billion in the third quarter of last year.
- Net income of $48.9 million, up 3.6% from $47.2 million.
For the first nine months of fiscal 2016, Dick’s reported:
- Net sales of $5.439 billion, an 8.1% increase from $5.031 billion during the first nine months of fiscal 2015.
- Net income of $197.2 million, down 2.1% from $201.4 million.
Dick’s operates 676 Dick’s Sporting Goods stores in the United States, 74 Golf Galaxy stores and 27 Field & Stream stores.
The retailer also operates e-commerce sites for all three brands and is in the process of moving its entire e-commerce operation to an internally operated platform. GolfGalaxy.com and FieldandStream.com have already moved to the new technology, and Dick’s executives have said Dicks.com will complete the transition by January 2017. They reiterated today that operating the Dicks.com e-commerce site internally will improve the retailer’s operating margins by 0.3%.
Dick’s previously had outsourced management of its e-commerce sites to the former GSI Commerce, which subsequently was acquired by eBay Inc., then spun off last year to a new company called Radial Inc. Radial has said it is getting out of the business of operating e-commerce sites for retailers and has recommended clients move their e-retail sites to software from Demandware Inc., which this year was acquired by Salesforce Inc., a provider of customer relationship management software.