Dick's Sporting Goods sales up 12%
11/03/2013
Athletic footwear and apparel grew, and sales in hunting were better than had been expected. These increases were partially offset by lower-than-anticipated sales in outerwear and cold weather accessories, as well as a significant decline in the fitness category.
Dick’s CEO Edward Stack said: "As a result of the unusually warm weather conditions, including during peak selling periods in December, we significantly reduced our inventory levels of cold weather merchandise to align with lower consumer demand and avoid carrying over excess inventory after a second year in a row of warm weather. While this was a prudent move that enabled us to effectively manage inventory and protect our margins, it did limit our ability to capture sales in January when temperatures dropped and snowfall increased.
"In fitness, the significant decline was a result of lower large-equipment sales like treadmills and ellipticals. We understand the issues that contributed to the sales decline and are taking action to correct them."
In the fourth quarter, the company opened seven new Dick's Sporting Goods stores. As of the end of the fourth quarter, the company operated 518 Dick's Sporting Goods stores in 44 states, and 81 Golf Galaxy stores in 30 states.
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