Footwear was a standout category for Dick’s Sporting Goods in the first quarter. And Nike, a key shoe vendor for the retailer, helped lead the way.
“Within our strategic partners, we are very excited about the long-term work that we saw in Nike,” Dick’s chief executive officer Lauren Hobart said in a call with analysts on Wednesday, noting how the Dick’s team had recently attended Nike’s “Innovation Summit” and had visited their offices to take a look “at future innovation.”
While Nike has recently faced slowing sales trends, the threat of new competitors and accusations of weak product pipeline, Hobart appeared optimistic about what the Swoosh has to offer. The executive touted Nike’s focus on technology, especially within its Air platform, as well as its product and marketing line-up for the upcoming Olympic Games in Paris.
“We’re really excited about the elevation of both performance apparel and footwear and bringing some newness into those categories,” Hobart said. “Across the board, [we’re] very excited about that partnership.”
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In December, Nike outlined a goal to save $2 billion worth of costs by streamlining its business structure via layoffs and increased automation. The Swoosh also said it would work on rebuilding its pipeline of innovative products, which includes shoes for athletes in track and field, soccer and basketball, as well as new running solutions.
While DTC has been a top priority for Nike over the last few years, the company has maintained wholesale accounts with specific retailers — such as Dick’s, Hibbett and Foot Locker — that offer an elevated experience and digital connectivity for its members. (Dick’s Sporting Goods launched a connected membership loyalty program with Nike in 2021.)
Beyond Nike, Hobart also called out other top partners like Hoka and On, both of which have benefited from the retailer’s revamped full-service footwear decks that offer a more premium shopping experience in stores.
“Hoka and On are still in a good portion of the chain,” Hobart said, noting that Hoka has a slightly larger retail presence in Dick’s than On at the moment. “There’s still significant upside in both brands.”
Overall, Dick’s said it saw footwear and athletic apparel grow in the first quarter as it reported overall better-than-expected results.
“Footwear certainly has been a big driver of comps, and footwear is a key part of how people shop,” Hobart said. “It’s the engine that drives the train. We’re very pleased with our footwear business.”
Dick’s on Wednesday reported net income for the quarter ended May 4 of $275 million, or $3.30 share, down from $305 million, or $3.40 per share, a year earlier. Overall sales increased 6.2 percent to $3.02 billion from $2.84 billion a year earlier and comparable-store sales were up 5.3 percent on top of a 3.6 percent increase in last year’s first quarter.
On the private label side, Hobart said that sales of Dick’s owned brands, such as DSG, Calia and Vrst, are outpacing the growth of the total company.
