The country’s largest full-line sporting goods chain has increased its full year same-store sales outlook to “slightly positive to up 2 percent” after Q1 delivered flat consolidated same-store sales, near the high end of the retailer’s expectations.
DKS senior management reiterated its strategy of reallocating space in 125 more doors in Q2, replacing hunting products with more merchandise geared toward each store’s individual market. The retailer stopped short of saying it would completely exit the hunt category, but confirmed it was taking steps to lower its exposure in the category, which negatively impacted Q1 comps by 1 percent and is likely to be negative throughout 2019.
Instead, Dick’s, which was encouraged by growth in its apparel, footwear and Team Sports business in February and March, also continues ramping up its private brands. CALIA’s footprint was expanded in 80 stores in Q1 with better product and higher price points expected to add more to the topline going forward. And the retailer’s new value-oriented athletic apparel label for men’s, women’s and kids, DSG, will debut in Q3. During the same period, DKS intends to open two new dedicated ecommerce fulfillment centers in New York and California. Ecommerce sales were up 15 percent in Q1 as average ticket rose 1 percent, but transactions dipped 1 percent. As for footwear, CEO Ed Stack said the retailer has “made some real changes” to its category presentation in stores, is receiving more allocated product from vendors and has become “very aggressive” in the running category. Also, he said Dick’s is “very pleased with the progress Under Armour has made, especially in our men’s business.”