Dick’s Sporting Goods is aiming to reshape the sporting retail landscape with new strategies highlighted by the rollout of its experiential House of Sport stores and Field House concepts.
The company plans to operate 75 to 100 House of Sport locations by 2027, marking a significant expansion.
During the company’s second-quarter earnings call Wednesday (Sept. 4), President and CEO Lauren Hobart said she is pleased with the firm’s financial results, and excited about its future trajectory.
“With House of Sport, we are redefining sports retail,” she told analysts and investors. “We delivered a very strong second quarter. Powered by our compelling omnichannel athlete experience, differentiated product assortment, best-in-class teammate experience and our ability to create deep engagement with the DICK’S brand, we are driving sustained top-line momentum and gaining market share.”
Dick’s second-quarter net sales rose 7.8%, to $3.47 billion, while comparable sales increased 4.5%. As a result, company officials raised their full-year 2024 guidance for comparable sales growth to a range of 2.5% to 3.5%, up from 2% to 3% previously. Additionally, second-quarter net income jumped 48%, to $362 million.
Currently, there are 14 House of Sport stores (with six more to open by the end of the year) that offer expansive, interactive environments. Many House of Sport locations feature amenities like climbing walls, sporting cages, golf simulators and fitness equipment, allowing customers to try out products in a dynamic, hands-on environment.
These stores also host events and offer expert services, catering to a consumer shift toward immersive, community-focused shopping experiences. While eCommerce serves those seeking convenience, shoppers are drawn to physical stores that offer engaging, lifestyle-aligned activities.
The strategy is paying off, as landlords are reporting unprecedented interest and increased mall traffic in areas housing these stores, according to the company.
“We continue to be really pleased with how our House of Sport stores are performing,” Hobart noted. “The things that get us very excited are athletes are travelling farther, visiting more frequently, and their dwell time is increasing. When we open a House of Sport, mall owners are telling us they are seeing increased traffic. It’s giving us access to some of the best malls and shopping centers in the country.”
In addition to its physical store innovations, Dick’s is heavily investing in its digital platforms. The company’s eCommerce site and mobile app have seen significant engagement, with 6 million unique users interacting through its GameChanger app in the second quarter alone — an 11% increase from the previous year.
“We continue to make the digital experience better for our athletes (customers),” Hobart said. “It allows us to connect with our athletes beyond the traditional shopping experience. They are some of our most valuable customers.”
Inspired by House of Sport, Dick’s Field House stores will comprise 50,000 square feet and offer a similar elevated assortment, service model, premium experiences, and enhanced visual expressions. Dick’s, which had 11 Field House stores at the end of 2023, plans to add 15 more this year.
“We’re emerging as the dominant player in the sporting goods landscape,” Hobart said. “We had 4.5% comp sales growth on top of 2% growth last year. Our long-term strategies are working. We have been focused on several key strategic pillars: differentiated products with high demand; enhanced service in our stores and website and making sure we get products into the hands of consumers sooner. It’s been a reinvention of our entire portfolio. Product itself is a key tailwind for us. Overall, we saw this past quarter’s growth across all income demographics. Our engagement with our customers is as high as it’s ever been, which is a credit to our store experiences, and our top-of-mind awareness is great.”
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