While some businesses are striving to withstand negative financial effects from the pandemic, Dick’s Sporting Goods is saying, “No sweat!” The company had a robust second quarter, seeing an increase in sales of 20.7% over the previous year’s revenues. It seems that sports fans who can’t attend their favorite events are choosing to invest in their own fitness activities.
The Apostle Paul realized that physical fitness had value. After all, he called the body “a temple” for God’s Spirit. (1 Corinthians 6:19) And he compared training the heart and mind to that of an athlete preparing for competition. (1 Corinthians 9:24-27) God values our bodies as well as our minds and souls. Investing in good health is a worthy choice, for sure!
Customers’ interest in physical activity and fitness shaped up to beat Wall Street’s expectations for the company. The variety of merchandise Dick’s offers equips sports fans to participate in many socially distanced activities. Most of the chain’s retail stores offer gear for boating, biking, golfing, weight lifting, climbing, and more. All those activities can be done at least six feet apart.
For its second quarter, Dick’s had total revenue of $2.71 billion. That was $20 million more than analysts on Wall Street had estimated the company would make. The company’s strong performance allowed Dick’s to grow from an investment standpoint too. Its stock sales rose 15% the afternoon that revenues were posted. That means investors were willing to pay more to own a piece of the thriving sports retailer.
Analysts predicted that sporting goods stores would sell less due to the pandemic. They argued that since many schools weren’t reopening for in-person instruction at the start of the school year and few fall sports were being played, then less clothing, footwear, and gear would be sold. Perhaps they underestimated the importance of physical activity to (bored) consumers.
Adults and children alike have begun investing more in physical health. Families are expanding beyond workouts to activities that everyone can enjoy such as hikes, backyard campouts, and fishing. All this works favorably for Dick’s.
Dick’s hopes to press forward with the upward sales trend. But that will depend on customers continuing their own fitness races—or investing in new activities, and the accompanying gear, in the fall.
