Dick’s Sporting Goods, Inc.

Sector: Apparel specialty retail Countries of operation: The US Key product categories: Sports accessories, apparel, equipment and footwear Annual Metrics [caption id="attachment_151094" align="aligncenter" width="700"] Fiscal year ends on January 30 of the following calendar year
*Trailing 12 months ended April 30, 2022[/caption]   Summary Founded in 1948 and headquartered in Pennsylvania, Dick’s Sporting Goods is a sporting goods retailer. It offers an assortment of sports accessories, apparel, equipment and footwear. The company owns and operates specialty store Golf Galaxy, which focuses on golf apparel and equipment, and Field & Stream, which focuses on outdoor activities including camping, fishing and hunting. The company also owns and operates e-commerce websites, as well as GameChanger, a youth sports mobile app that provides league management services, including scheduling and live scorekeeping. As of April 30, 2022, Dick’s operates 850 stores. Company Analysis Coresight Research insight: Dick’s Sporting Goods benefits from its buying scale, size and ability to leverage strong relationships with its key vendor partners—including leading brand owners such as NIKE and Under Armour. “Vendor shops” featuring these brands have become centerpieces across the company’s stores. Furthermore, its private-label brands, including CALIA, DSG and VRST are helping to drive strong sales growth, providing a margin benefit and differentiating the company from its competitors. These private labels represent the company’s largest brands in the fitness, golf, team sports and outdoor equipment categories. Moreover, Dick’s Sporting Goods is continuing to expand its new concepts, including Dick’s House of Sport, Golf Galaxy Performance Center, Going, Going, Gone!, and Public Lands—which have set an example of the power of community engagements, merchandise presentations and elevated services. Dick’s Sporting Goods is also aggressively ramping up its e-commerce business, which comprised 21% of the company’s total sales in fiscal 2021, versus just 16% e-commerce penetration in fiscal 2019. The company is expanding its multi-channel operations, including its ship-from-store capabilities—a critical strategy across the retail landscape as e-commerce specialists continue to gain market share over brick-and-mortar retailers.

Tailwinds

Headwinds

Huge size, buying scale and strong multi-channel capabilities Private-label brands remain robust across both hardlines and softlines Continued strong athletic trends, present even before the pandemic Strong momentum across its new concepts’ stores, such as Dick’s House of Sports and Public Lands Continued strong relationship with leading brand owners, such as NIKE and Under Armour, driving innovation

Heightened competition from e-commerce specialists such as Amazon as well as vendor direct-to-consumer channel cannibalization. Increase in supply chain-related costs to impact margins Long-term lease commitments

  Strategy In its annual report for fiscal 2021, published in March 2022, the company laid out its strategy. It focuses on the following five key areas: 1. Improve customer experience

• Proactively manage its in-stock merchandise positions in its diverse category portfolio and improve its merchandise presentation to offer a clear point of view for in-demand items, such as its premium full-service footwear departments
• Offer a wide range of in-store support services and incorporate experiential elements and technology into its stores to better engage and serve its customers
• Develop and test new store prototypes and concepts to grow its business, while incorporating key learnings into the rest of its chain
• Provide real-time product information, inventory availability and alternative product recommendations as well as other metrics, online and in-store
• Capitalize the data in its database to enhance the experience by engaging its consumers through digital marketing and offering them personalized offers. Use data science to improve the delivery speed through optimized order routing and enhance its in-stock and merchandise availability positions

2. Optimize assortment

• Provide high-quality, genuine products at the best price points
• Expand the breadth of its product selections in each sporting goods category
• Deliver a differentiated multi-brand experience through its national and vertical brands

3. Drive omnichannel growth

• Offer enhanced ship-from-store capabilities and greater opportunities for customers to buy online and pick up in store
• Invest in its fulfillment, delivery and payment capabilities, create e-commerce fulfillment centers and partner with courier services

4. Expand its private labels and differentiate its stores

• Expand its private-label brands into additional product categories and provide them with both improved in-store space and increased advertising
• Provide a unique shopping experience through new initiatives, including brand shops that offer its consumers a deeper and wider selection of products from key brands

5. Continue to Invest in youth sports

• Continue to sponsor teams in various sports
• Raise awareness of the importance of playing sports and provide financial support to keep kids playing the sports they love

Revenue Breakdown (FY21)   Company Developments

Date	Development
June 6, 2022	Dick’s Sporting Goods announces plans to open its first UK-based “Public Lands” outdoor-concept store in Framingham.
June 3, 2022	Dick’s Sporting Goods opens its third House of Sport store. The store spans 115,000 square feet store and features a batting cage, golf simulators, a new concept hockey shop with apparel and equipment, and a rock-climbing wall.
May 19, 2022	Dick’s Sporting Goods Foundation and McKeesport Area School District announce a partnership to offer elementary-aged children at Twin Rivers Elementary with access to resources and technology to support their learning.
March 15, 2022	Dick’s Sporting Goods hires over 200 Associates for its new House of Sport store.
March 9, 2022	Dick’s Sporting Goods collaborates with Just Women's Sports (JWS), the multimedia platform dedicated to women's sports, to reward $150,000 to the winner of the 2022 Just Women's Sports x DICK'S Bracket Challenge—the biggest first-place prize ever given in women's college basketball.
January 6, 2022	Dick’s Sporting Goods and Golf Galaxy banners becomes the official retail partners of the Golf Digest’s Hot List, an annual golf equipment publication.
November 9, 2021	Dick’s Sporting Goods Foundation provides 10,000 gifts of sports equipment to children from under-resourced communities on eight-city tour.
November 5, 2021	Dick’s Sporting Goods opens its second “Public Lands” outdoor-concept store in Ohio.
November 3, 2021	Dick’s Sporting Goods enters into a connected partnership agreement with NIKE to reach each other’s customers via joint loyalty programs, and by providing them with access to exclusive products and offers.
September 24, 2021	Dick’s Sporting Goods opens its first “Public Lands,” an outdoor-concept store in Pennsylvania.
September 21, 2021	Dick’s Sporting Goods announces that it has been named as an official marketing partner of the Women's National Basketball Association (WNBA).
September 13, 2021	Dick’s Sporting Goods announces that it will hire up to 10,000 seasonal associates for the 2021 holiday season–the largest number in the company’s history.
August 19, 2021	Dick’s Sporting Goods appoints Navdeep Gupta as CFO and Executive VP, effective October 1, 2021.
June 28, 2021	Dick’s Sporting Goods Foundation provides 15,000 gifts of sports equipment to women athletes on eight-city tour.
June 1, 2021	Dick’s Sporting Goods announces plans to open a second location of its new, experiential store concept, Dick’s House of Sport, in Knoxville, Tennessee on June 4. Furthermore, the company noted that it will open two newly redesigned Golf Galaxy locations, a relocated Dick’s Sporting Goods store and three Warehouse Sale stores by the end of June.
May 4, 2021	Dick’s announces plans to open one Dick’s Sporting Goods store, one Warehouse Sale Store and two locations of its new off-price store concept, Going, Going, Gone! in May.
April 29, 2021	Dick’s collaborates with American celebrities Stephen ‘tWitch’ and Allison Boss for the retailer’s family athleisure brand.
April 22, 2021	Dick’s signs footballer DeVonta Smith as a brand partner for its men’s apparel line VRST.
March 11, 2021	Dick’s unveils a new advertising campaign Inside Moves to showcase the organization’s female leadership.
January 29, 2021	Dick’s announces the expansion of female-focused initiatives, such as donating 100,000 sports bras to under-resourced female athletes across the US over the next 18 months.
November 24, 2020	Dick’s announces that its Board of Directors unanimously elected Lauren Hobart, then President, as President and CEO, effective February 1, 2021. Edward Stack, Chairman and CEO, will assume the role of Executive Chairman and continue as Chief Merchant on February 1, 2021.
October 28, 2020	Dick’s announces the opening of three pop-up locations for its private-label CALIA by Carrie Underwood, a fitness and lifestyle brand created in collaboration with Grammy award winner Carrie Underwood.
September 29, 2020	Dick’s commits to the removal of all single-use point-of-sale plastic bags from its stores by 2025. The company joins a consortium of leading retailers which launched the “Beyond the Bag” initiative, offering sustainable solutions as substitutions for single-use plastic bags.
September 15, 2020	Dick’s enters into a partnership with Under Armour to launch UA HOVR Breakthru, a basketball shoe developed specifically for women.
June 12, 2020	Dick’s announces the reinstatement of its dividend program, which was suspended in its first quarter as part of the company’s initial response to Covid-19.
October 10, 2019	Dick’s hosts its first-ever fashion show, highlighting lifestyle outerwear, footwear and accessories from leading brands available at Dick’s.
August 1, 2019	Dick’s launches DSG, an athletic gear and apparel line offering an expanded assortment of sizes and styles for men, women and youth.
May 2, 2019	Dick’s announces the appointment of Ed Plummer as Chief Marketing Officer and Steve Miller as the Senior Vice President of Strategy and Analytics.

  Management Team

• Lauren Hobart—President and CEO
• Edward Stack—Executive Chairman and Chief Merchandising Officer
• Navdeep Gupta—Executive Vice President and CFO
• Peter Land—Executive Vice President and Chief Communication Officer
• Vlad Rak—Executive Vice President and Chief Technology Officer
• Ed Plummer—Senior Vice President and Chief Marketing Officer

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Source: Company reports/S&P Capital IQ