Sales at Dick’s Sporting Goods drop 31% in Q1
Pennsylvania-based sportswear and equipment retailer Dick’s Sporting Goods, Inc. announced a 30.6% decline in net sales in the first quarter, due in large part to disruptions related to the Covid-19 pandemic.
The company’s sales for the first quarter ended May 2, 2020, totaled $1.33 billion, down from $1.92 billion in the prior-year period. Consolidated same-store sales fell 29.5%, mostly as a result of temporary store closures implemented by the company in response to the coronavirus crisis on March 18, 2020.
Dick’s Sporting Goods’ e-commerce sales made strong progress during the quarter, rising 110%, but were not sufficient to offset the declines related to the temporary brick-and-mortar store closures. Digital sales represented 39% of the company’s total revenues for the quarter, compared to 13% in the first quarter of 2019.
The retailer’s quarterly net loss came to $143.4 million, or $1.71 per diluted share, down from net income of $57.5 million, or $0.61 per diluted share, in the same period in the previous year.
Along with its sales declines, the company’s bottom line was negatively impacted by $62 million in pre-tax expenses related to teammate compensation and safety costs, as well as inventory write-downs.
As of May 30, Dick’s Sporting Goods has reopened approximately 80% of its 851 stores and, according to the company’s president, Lauren R. Hobart, has already seen signs of recovery.
“Through the first four weeks of the second quarter our consolidated same store sales have decreased only 4.0%, representing a progressive recovery as we re-open our stores and maintain strong sales momentum in our e-commerce business, which has increased over 250%,” she said in a release.
Chairman and CEO Edward W. Stack was also optimistic about the future of the business.
“We believe coming out of the current crisis, health and fitness will become even more important to the consumer,” he commented. “As the leader in the sporting goods retail sector, our relationships with key brands have never been stronger and we are in a great place to support this demand.”
Due to continued uncertainty about the effects of the coronavirus pandemic, Dick’s Sporting Goods withdrew its financial guidance for fiscal 2020 on March 19 and has not yet provided an updated outlook.
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