Founded as a tackle shop back in the 1940s, Dick’s Sporting Goods (DKS) has grown from that one original store to a nationwide chain of 726 stores (and counting), notes Briton Ryle, editor of The Wealth Advisory.
The company is the largest omnichannel sporting goods retailer in the U.S. And it’s had a great year that looks like it’ll only be getting better.
While most of the U.S. retail industry was on life support, Dick’s reported its highest quarterly sales figures in history. The reason: People were re-experiencing the outdoors. And that’s a trend we can see continuing even after COVID-19 is no longer an issue.
Dick’s spent the past few months beefing up its online options for e-commerce. And it’s adding 9,000 new employees to help with curbside pickup at its 700+ stores across the country.
Dick’s is far more than just equipment you need to play sports. It’s a lifestyle store for people who enjoy being active. From fishing, hiking, camping, Dick’s has all the gear you could possibly need.
This is a short-term play on the potential for more lockdowns and more social distancing driving more people back into the outdoors for recreation.
But it’s also a long-term play on a solid company with a track record for raising dividends that’s coming into a sweet spot for growth and customer acquisition. Any way you slice it, Dick’s looks like a perfect fit for our portfolio.
