Dick’s Sporting Goods Readies New Apparel Brand, Parts with Reebok
Dick’s Sporting Goods will launch a new athletic apparel brand by August, replacing a licensing deal with Reebok as it continues to expand its assortment of private label products, CEO Edward Stack said in releasing earnings for Q4 ended Feb. 2.
Stack said the new brand (name not disclosed) will be on opening price point products in men’s, women’s, boys’ and girls’ apparel and be given “meaningful floor space.”
“We think will do more business [with the private label] than we did with Reebok,” he said.
In addition, Dick’s will expand the space in stores dedicated to Carrie Underwood’s Calia athletic apparel and activewear, which it launched with the singer in 2014, Stack said. Dick’s private label business posted a double-digit Q4 increase in same-store sales and accounted for 14% of net sales ($348 million), up from 12% ($297.6 million).
Net income fell 11.5% to $102 million, as revenue declined 6% to $2.49 billion on a 2.2% decline in same-store sales, due largely to lower sales of hunting products and electronics. Dick’s is discontinuing sales of hunting products in 125 stores this year.
Ecommerce sales rose 17%, accounting for 23% ($573 million) of total net sales, up from 19% ($506 million) a year earlier.
Dick’s Sporting Goods, Lee Belitsky, CFO, 724-273-3400