Dick’s Sporting Goods (NYSE: DKS | Earnings Release) continued its extraordinary financial performance in Q2 with e-commerce leading the way. E-commerce sales increased 111% compared to Q2 2019, but decreased 28% compared to Q2 2020, which produced unprecedented online sales growth of 194% during the heart of the lockdowns and included temporary store closures. E-commerce now represents 18% of all net sales for the company, up from 12% in 2019.
Year-to-date, net sales for the 26 weeks as of July 31, 2021, were $6.19 billion, an increase of 53% compared to the 26 weeks ending August 1, 2020, and a 48% increase compared to the 26 weeks ending August 3, 2019. Consolidated net income for 26 weeks as of July 31, 2021, was $857.3 million.
"We said 2021 was going to be the most transformational year in our history, and so far, it certainly has been,” said Ed Stack, executive chairman.
Dick’s Sporting Goods president Lauren Hobart called out golf specifically for its tremendous performance at both Golf Galaxy and Dick’s Sporting Goods locations. The customer experience is a key initiative for the brand with Trackman technology being installed in 80% of its stores to enhance both lessons and fittings. By the end of Q3, 100% of Golf Galaxy locations will include Trackman technology. Twenty Golf Galaxy locations have been redesigned to more fully engage with golf enthusiasts of all levels. This weekend outside of Boston, the first Golf Galaxy Performance Center will open. The location is described as an "elevated experience for golfers."
Dick’s Sporting Goods is working with its vendors in team, golf and outdoor sports to rebuild inventories after unprecedented consumer demand and supply chain challenges have wreaked havoc on every retail channel. Its position as the VIP heavyweight retailer in sports gives it considerable clout with brands to prioritize Dicks, Golf Galaxy and all its specialty retail locations when product is being allocated at vendor warehouses. Consequently, total inventory increased 7.2% at the end of 2021 Q2 compared to 2020 Q2.
