Selective pricing initiatives help drive Dick’s Sporting Goods in Q3
Dick’s Sporting Goods said marketing efforts, improved customer experience and selective pricing initiatives in the third quarter helped traffic which resulted in net sales of $1.4 billion for the quarter, an increase of 6.7% compared to the year-ago period.
Margins were still slightly lower than anticipated, however, thanks in part to the shifted calendar, due to the extra week in 2012. Adjusting for that shift, consolidated same store sales increased 3.3%; the year-ago quarter’s same store sales increased 5.1%. E-commerce penetration for the quarter was 6.5% of total sales.
"Despite the continued challenging consumer environment, we delivered better than expected results in the third quarter, exceeding both our sales and earnings expectations. The marketing efforts, improved customer experience and selective pricing initiatives we began in the third quarter were successful in driving traffic and sales, but at slightly lower than anticipated margins," said Edward W. Stack, chairman and CEO. "We remain excited about the long-term opportunities in our business that we presented at our analyst day in September, and we will continue to drive towards those goals."
In the third quarter, the company opened 25 new Dick’s Sporting Goods stores, one new Golf Galaxy store and two new Field & Stream stores. The company also relocated one Dick’s Sporting Goods store, repositioned one Golf Galaxy store and completed three full and 22 apparel remodels of Dick’s Sporting Goods stores. As of Nov. 2, the company operated 552 Dick’s Sporting Goods stores in 45 states, with approximately 29.9 million sq. ft. and 82 Golf Galaxy stores in 30 states, with approximately 1.4 million sq. ft.