Is Sporting Goods a Clear Pandemic Winner?

March 20, 2023

Sporting goods are increasingly cementing their position among the ‘pandemic winners’, with sales for the big three publicly traded chains, Dick’s Sporting Goods, Academy Sports and Hibbett Sports, continuing to be well above pre-pandemic levels.

Sales for the channel surged early in the pandemic as people took up outdoor activities like biking, hiking, hunting, golf and running while confined to their homes. Since then, team sports have made a strong recovery from initial confrontation pandemic-related cancellations. Another growth driver has been people adopting active lifestyles amid improved health consciousness tied to the pandemic.

It was expected that the sales growth in sporting goods industry would be challenged in 2022 as people returned to socializing and other pre-pandemic activities. Still have sales at a significantly higher level from 2019, as many Americans — though not all — clung to the outdoor habits they discovered or rediscovered during the pandemic and continued to prioritize exercise.

After the results of 2022:

• Dick’s revenue increased 0.6 percent year-on-year and is up 41.3 percent compared to 2019;
• Academy revenue declined 6.4 percent year-over-year but increased 32.4 percent over 2019;
• Hibbetts Same Store Sales declined 2.2 percent in 2022 but increased 41 percent compared to 2019.

The progress of each chain also reflects the internal transformation efforts undertaken before the pandemic. Academy invested in inventory management and localization. Hibbett increased his focus on fashion. Dick’s believes it has become more differentiated with improved mapping and new in-store experience elements, such as batting cages and golf simulators.

At most, modest growth is expected for the current year. Comp predictions range from minus two percent to plus one percent for Academy, flat to plus two percent for Dick’s and low single digits for Hibbett. During quarterly calls, officials expressed confidence that consumers would continue to invest in their newfound active pursuits and lifestyles to offset inflationary and economic pressures.

“What we’re finding is that people are prioritizing health and wellness, and an active lifestyle, and team sports … they’re even more popular than they were before the pandemic,” Dick CEO Lauren Hobart said on Dick’s call. “People have really decided with what they have in their wallets, they prioritize those categories. They are brought to life as necessities rather than discretions.”