DICK'S Sporting (DKS) Collaborate With WNBA as Retail Partner

DICK’S Sporting Goods, Inc. DKS has inked a multi-year deal to become the official retail partner of the Women's National Basketball Association (“WNBA”). The company in association with WNBA will help to inspire and connect with female athletes of all ages. The move also makes DICK’S Sporting the largest national retailer for WNBA merchandise.

It will help expand the visibility of WNBA teams and players across the United States through new merchandise and an assortment of sports apparel and equipment. Customers will now have access to the team’s new NIKE NKE jerseys, Wilson WNBA basketballs, t-shirts and WNBA Logowoman hoodies in certain DICK'S Sporting locations as well as online and the mobile app along with all 12 WNBA markets.

In sync with its efforts to focus on female athletes throughout 2021, DICK’S Sporting earlier arranged 15,000 gifts of sports equipment for young girls at certain namesake stores via the Giving Truck. The truck crossed Boston, Philadelphia, Washington DC, Pittsburgh, Cleveland, Indianapolis, Kansas City and Knoxville entire July.

The Giving Truck started in December 2020, distributing 10,000 pieces of sports equipment to youth sports organizations, followed by a second tour in March, offering 10,000 pieces of equipment to youth baseball and softball athletes. To date, the company, through the initiative, has provided 20,000 gifts across 16 cities nationwide.

With such endeavors, management believes that young girls will return to the type of sports they love and keep playing without any financial burden. This, in turn, is likely to ensure the continuation of youth sports across the United States.

What Else?

DICK’S Sporting has managed to keep its stellar show on, courtesy of increased consumer spending and continued online strength. E-commerce sales surged 111% on a two-year basis, representing nearly 18% of net sales for second-quarter fiscal 2021, up from 12% in second-quarter fiscal 2019. This was mainly driven by strong online demand and improved omni-channel capabilities, including curbside pickup services and BOPIS. Alongside services like in-store and curbside pickup; reduced promotions, faster delivery and a better checkout experience contributed to quarterly growth.

Its mobile platform remains a key growth driver, accounting for more than 50% of online sales for the first half of 2021. As part of its long-term plan, the company aims to make significant investments in e-commerce, technology, store payroll, Team Sports and private brands.

On the store-front, management recently revealed plans to open its first Public Lands store in Pittsburgh, PA, this September and launched another Going, Going, Gone! off-price concept store in Royal Palm Beach, FL.

Prior to this, the company opened its second DICK'S House of Sport in Knoxville, TN, two redesigned Golf Galaxy locations, three warehouse stores and experiential in-store Soccer Shops in certain stores in June. Management opened one namesake store, one warehouse store and two new off-price concept stores — Going, Going, Gone! — in May.

In April, it launched its first-ever DICK'S House of Sport at Victor, NY, along with two warehouse stores and soccer shops. In fiscal 2021, management plans to open six DICK'S Sporting Goods stores and eight specialty concept stores.

DICK’S Sporting has been gaining from strength in its core categories, including hardlines, apparel and footwear. It also noted that the third quarter of fiscal 2021 and the back-to-school season started on a solid note. Management raised its fiscal 2021 view.

Fiscal 2021 sales are expected to be $11,520-$11,720 million, up from the previously mentioned $10,515-$10,806 million. Same-store sales are likely to grow 18-20%, up from the earlier stated 8-11%. Adjusted earnings are now envisioned to be $12.45-$12.95, which reflect a sharp improvement from $8-$8.70 per share mentioned earlier.

In the past three months, shares of this Zacks Rank #3 (Hold) stock have risen 40.8% against the industry’s decline of 15.3%.

Image Source: Zacks Investment Research

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