Dick's Sporting Goods is thriving because the athleisure life just won't stop
YouTube: 15-minute killer ab workout... You've seen it 1000X. Shares of Dick’s Sporting Goods jumped 13% yesterday, after the self-explanatory company revealed quarterly sales were 45% higher than pre-pandemic levels. During the corona-conomy, we abandoned gyms in favor of at-home workouts and park jogs. Dick's sales of workout clothes, sneakers, and golf clubs spiked. But even as gyms reopen, the athleisure lifestyle is sticking — and Dick's stock has more than doubled this year.
Year(s) of the yoga mat... Retail spending is rebounding as recovery continues, and is on track to pass pre-pandemic levels. Part of the boost: some pandemic trends are still trending. Sales of activewear, athleisure, "comfort clothes," and sports gear are booming.
- Avoiding gyms: Sales of health and fitness equipment more than doubled from March to October, and the market is expected to continue growing in the coming years.
- Getting outside: Four in 10 former gym members plan to switch to running or outdoor exercise this year, according to a recent survey.
- Staying comfy: Urban Outfitters sales more than tripled last quarter, thanks to a big boost from its Free People activewear sub-brand, “Movement.”
The future is active… and retailers are trying to keep pace. Companies that offer activewear lines or sports gear, like Urban and Dick’s, saw sales surpass pre-pandemic levels. Retailers that haven’t focused on athleisure haven't seen the same benefits: Sales at fashion-forward Nordstrom were still below pre-pandemic levels last quarter. Now, Dick’s is opening a new outdoors-focused store concept this fall, and Urban plans to open 20+ new Movement stores this year and next.