Dick’s Sporting Goods taps President Lauren Hobart as CEO, sales surge as consumers buy fitness gear

Dick’s Sporting Goods on Tuesday introduced its present president, Lauren Hobart, is about to succeed Ed Stack as chief government on Feb. 1.

Stack, 65, will transition to government chairman and stay chief service provider, the corporate mentioned in a information launch. He took over the enterprise from his dad in 1984, when he was then 29 years outdated. He later took Dick’s Sporting Goods public in 2002.

“This is the perfect time for this transition,” Stack mentioned in an announcement. “We have the best management team in the company’s history, and the investments we have made in our people, our stores, and our communities are paying off.”

The announcement comes as Dick’s Sporting Goods continues to reap the advantages of consumers shopping for extra exercise gear, sporting items and outside gear in the course of the coronavirus pandemic. Its e-commerce sales surged 95% in the course of the third quarter, and it reported report quarterly same-store sales development of greater than 23%.

Its shares had been up almost 2% in premarket buying and selling.

Here’s how Dick’s Sporting Goods did throughout its fiscal third quarter of 2020, in contrast with what analysts had been anticipating, based mostly on Refinitiv information:

  • Earnings per share: $2.01, adjusted, vs. $1.01, anticipated
  • Revenue: $2.41 billion vs. $2.23 billion, anticipated
  • Same-store sales: Up 23.2% vs. development of 14.1%, anticipated, in accordance with StreetAccount

For the quarter ended Oct. 31, Dick’s Sporting Goods’ internet earnings grew to $177.2 million, or $1.84 a share, from $57.6 million, or 66 cents per share, a yr earlier. Excluding one-time costs, the corporate earned $2.01 per share, higher than the $1.01 anticipated by analysts.

Net sales climbed roughly 23% to $2.41 billion from $1.96 billion a yr earlier, higher than the $2.23 billion forecast by analysts.

The firm mentioned it’s not providing an outlook for the rest of the yr as a result of uncertainty stemming from the pandemic.

However, the corporate famous that, up to now, “the favorable trends in our business have continued” into the fourth quarter. Through the primary three weeks of the vacation quarter, it mentioned same-store sales are up a high-teens share.

Dick’s Sporting Goods introduced its present president, Lauren Hobart, is about to succeed Ed Stack as chief government on Feb. 1, 2021.

Source: Dick’s Sporting Goods

Like many different retailers, the corporate has seen its prices boosted by the pandemic. In the most recent interval, it incurred $48 million in prices for security measures and extra worker compensation. The focus for Dick’s Sporting Goods in the course of the pandemic has been on driving sales on-line and inspiring consumers to make use of its in-store pickup choice for e-commerce purchases. During the third quarter, the corporate mentioned its on-line sales accounted for roughly 21% of whole internet sales, up from 13% a yr earlier.

These efforts ought to proceed as Hobart takes the reins early subsequent yr.

Following stints at PepsiCo, Wells Fargo and JP Morgan, Hobart, 52, joined Dick’s Sporting Goods in February 2011, as senior vp and chief advertising and marketing officer, the place she performed a key position in serving to develop and launch one of many retailer’s prime non-public labels, CALIA by Carrie Underwood. In 2015, Lauren was promoted to government vp and CMO, after which chief buyer and digital officer. She was named president in May 2017, and has served on Dick’s Sporting Goods’ board since January 2018.

Hobart additionally earlier this yr joined the board of Yum! Brands.

More lately, Hobart has made the ladies’s athletic attire and footwear market a much bigger focus at Dick’s Sporting Goods, serving to to drive the launch of further non-public labels. She has helped Dick’s Sporting Goods refocus its technique to compete in opposition to the likes of Amazon and Walmart, as plenty of its sporting items rivals — such as Sports Authority, Sport Chalet and City Sports — have filed for chapter and shuttered shops in recent times.

She has helped the corporate refocus its inventories on key classes like youth sports activities, enhance customer support and add in-store experiences like batting cages, to supply consumers one thing they can not discover on the web.

As of Monday’s market shut, Dick’s Sporting Goods shares are up greater than 18% this yr. The firm has a market cap of about $5.2 billion.

Find the complete press launch from Dick’s Sporting Goods right here.

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Written by Business Boy


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