Dick's Sporting Goods' Record Q4
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Dick's Sporting Goods reported earnings and we take a look at the CEO transition at Brooks . Plus analysts react to the return of Kevin Plank at Under Armour.
Here's what you need to know.
Dick’s Sporting Goods Is Making Its Stores Bigger as Other Chains Shrink Their Fleets
Shares of Dick’s Sporting Goods soared on Thursday morning after the retailer reported sales and earnings figures that crushed expectations.
In the fourth quarter , the sporting goods store’s revenues were $3.88 billion, up 7.8 percent from the same quarter last year and ahead of the $3.8 billion expected by analysts surveyed by Yahoo Finance. Non-GAAP earnings per diluted share were $3.85, up 31 percent from last year and ahead of the $3.35 analysts were looking for. Q4 marked the company’s largest sales quarter in history, even excluding an extra week added into the quarter.
The "big" story: Amid a broad trend to make stores smaller and more localized, Dick’s is seeing results with the opposite strategy . The sporting goods chain said it will open 16 new next-generation “50,000” Dick’s stores in 2024 after opening 11 of these large-format locations in 2023. These stores, which build on the chain’s classic 50,000 square foot store model, will consist of four new locations and 12 relocations and remodels.
Dick’s focus on larger stores bucks a broader industry trend in which chains are looking to shrink their stores. In general, shoe brands appear to be opting for newer, smaller concept stores that aim to blend a showcase of top-tier product with unique experiences catered to specific regions.
Inside Brooks’ CEO Transition: How Company Vet Dan Sheridan Plans to Engage New Consumers, Tackle New Markets
With Jim Weber ‘s upcoming departure from Brooks, incoming chief executive officer Dan Sheridan has some big shoes to fill. The running industry —?Weber included —?believes the exec is the right person for the job.
“Transitions are hard on each person, including me. But for Brooks, this is as good as it gets,” Weber told FN.
On March 12, Brooks announced that Weber was stepping down as CEO after 23 years. Sheridan, currently the Brooks president and chief operating officer , will assume the CEO role on April 26.
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Speaking with FN , Weber spoke fondly of witnessing Sheridan’s ascent at Brooks, which began in August 1998 and included field marketing roles and various positions with the brand’s wholesale business. Weber also said Sheridan was an early key figure in Brooks’ digital efforts, which led to further engagement with runners.
Looking ahead, Sheridan said Brooks will unveil a new brand expression this summer, which was created by chief marketing officer Melanie Allen and her team.
Other key areas of investment, according to Sheridan, include research and development, innovation and new markets.
Under Armour Shares Dive 12 Percent Over CEO Turmoil as Kevin Plank Returns to?Role
Wall Street gave a firm thumbs down to the return of Kevin Plank to the top spot at Under Armour, punishing the company by sending its shares down by almost 12 percent in midday trading on Thursday.
While some analysts are hopeful that Plank is the fuel needed to return the company to its glory days, the fact that Under Armour has had three chief executive officers in four years was the reason for the stock’s steep decline on Thursday, the day after the Baltimore-based sports brand said Plank would succeed Stephanie Linnartz as president and chief executive officer.
Linnartz, the former president of Marriott International, assumed the role of CEO of Under Armour in February 2023 and had been building her team to implement Protect This House 3, a three-year turnaround plan designed to raise awareness of the Under Armour brand, deliver elevated designs and products to boost U.S. sales and maintain the company’s momentum overseas.
But her plan did not have immediate positive impact and speculation was rampant that the board was running out of patience and not willing to wait. The biggest issue is the company’s performance in North America, its largest market, which accounts for around two-thirds of its overall sales. In the third quarter results released in February, Under Armour reported stronger than expected net income of $114.1 million, but sales in North America were down 12 percent. International revenue was up 7 percent with strength in Europe, the Middle East, Africa, Asia Pacific and Latin America.
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