Why Is Dick’s Sporting Goods Gaining Share?

On Dick’s Sporting Goods’ first-quarter analyst call, Lauren Hobart, president and CEO, called out four strategic pillars driving continued market share gains: omnichannel athlete (shopper) experience, differentiated on-trend product assortment, best-in-class teammate (employee) experience, and creating deeper brand engagement.

Comps climbed 5.3% in the first quarter on top of a 3.6% increase last year, driven by growth in transactions and average ticket size.

The gains came despite challenges faced by Nike, Adidas, and The North Face in large part due to promotions required to work down elevated inventories over the last two years because of supply chain disruption as well as the pullback in discretionary spending.

Addressing the pillars, Hobart said Dick’s omnichannel reach is “driving robust athlete engagement.” She added, “We are continuing to enhance service levels across all our digital and store experiences to meet our athletes wherever they are, provide the support and service they need, and get product into their hands faster.”

Hobart explained that the company’s growth has continued to be driven by omnichannel shoppers, who spend more and shop more frequently than single-channel shoppers.

She also said that investing in digital capabilities is “central to our omnichannel success,” but investments in new concepts — including its House of Sport experiential concept, the next-generation 50,000-square-foot Dick’s store, and Golf Galaxy Performance Centers — are all further stimulating omnichannel shopping behavior. She particularly called out House of Sport for “creating an experience that people cannot get anywhere else.”

Eight House of Sport, 16 next-generation stores, and several Golf Galaxy Performance Centers will open this year.

The second pillar, “Differentiated On-Trend Product,” helps make Dick’s the “go-to destination for sport” in the U.S., according to Hobart.

“We’re excited about the product pipeline from our key brand partners,” she said. “For example, Nike’s recent Paris Innovation Summit highlighted several breakthrough products across apparel and footwear that we look forward to bringing to our athletes. Our relationships with our brand partners are stronger than ever and the innovation of performance and style, in our opinion, has never been better.”

She added that Dick’s private labels, led by DSG, CALIA, and VRST, are “resonating very well” with shoppers, with comps continuing to outpace companywide growth on stronger margins. Hobart added, “We see a long runway for sales and profitability growth for our vertical brands.”

Regarding “Best-in-Class Teammate Experience,” Hobart noted that Dick’s landed on Fortune’s Best Workplaces in Retail for the fourth year in a row. She said, “We remain focused on providing our teammates with the tools and technology to help them do their jobs better and driving a culture where they can develop and thrive.”

Finally, Hobart called out investments in “several exciting marketing campaigns,” including one starring actors Will Arnett and Kathryn Hahn and one around the March Madness tournament, helping fuel “deeper brand engagement” with consumers. Dick’s also recently marked the 10-year anniversary of its Sports Matter Program with an investment of $2 million in grants to support youth sports.

In the Q&A section of the call, Hobart said Dick’s is taking share “really across the board,” citing the benefit of an upgraded in-store experience, including full-service footwear departments that have helped gain access to footwear’s hottest brands, HOKA and On, as well as the appeal of its private labels across price points and some consolidation in the marketplace. She said, “It’s across the board and across the industry that we’re seeing share gains.”