Dick's Sporting Goods is shifting focus away from its Field & Stream stores toward its House of Sport concept, a significantly larger — and more profitable — version of the familiar Dick's Sporting Goods store.
Speaking during the company’s fourth quarter earnings conference call on Tuesday, Lauren R. Hobart, president and CEO of the Findlay-based retailer, said the holiday quarter was historically strong. Dick's reported record quarterly sales of $3.6 billion, a 7.3% increase, boosting yearly sales to $12.4 billion.
She noted that sales were up 41% over the company’s fiscal 2019 results, the period before the pandemic shifted Americans’ spending patterns and forced retailers to adapt. In addition, same-store sales — a metric that looks only at sales in stores that have been open more than a year — rose 5.3% for the holiday quarter over the same period a year earlier.
House of Sport differs from a standard Dick’s Sporting Goods store in that it provides not just athletic gear and apparel, but various features such as athletic training facilities, rock climbing walls, batting cages and outdoor fields, and services for activities ranging from cycling to golf.
Dick’s opened its first Field & Stream in Cranberry in 2013, catering to outdoor enthusiasts and hunters. Navdeep Gupta, executive vice president and chief financial officer, said all remaining Field & Stream stores will be converted by 2024.
Dick’s began moving away from Field & Stream when it introduced its outdoor concept store Public Lands following the 2018 decision to stop selling assault-style rifles following the massacre at a Parkland, Fla., high school.
The company expects much of its square-footage growth in 2023 to come through the expansion of House of Sport stores, officials said.
“In 2023, we will open nine new Dick's House of Sport locations, eight of which are existing Dick's and Field & Stream common store conversions along with one relocation,” Mr. Gupta said.
He said construction will also begin on more than 10 new Dick's House of Sports locations slated to open throughout 2024.
Ms. Hobart described the House of Sports store format as “redefining sports retail.”
“It's an experiential destination that was inspired by (Dick's Chairman) Ed (Stack) as he challenged us to create the concept that, if built across the street from a Dick's Sporting Goods store, we'd put that store out of business,” she said. “Since launching House of Sport in 2021, our initial three locations have exceeded our expectations (while) delivering much higher total sales and profit as well as much higher sales and profit on a per square foot basis.”
Dick's intends to open 20 additional House of Sport stores in the next two years, with locations including Pittsburgh, Boston and Binghamton, New York. There are more than 850 Dick’s stores nationwide, according to the company.
Post-Gazette business news: business@post-gazette.com
First Published: March 7, 2023, 11:58 p.m.
