“Retailers Dick’s Sports Goods (DKS) and Nordstrom (JWN) reported quarterly results before market open and after market close yesterday, respectively, that underscored the growing rift in performance between big-box retailers that have captured new consumer trends during the pandemic, and those that have struggled to keep pace.
Dick’s Sporting Goods delivered comparable same-store sales growth of 21%, or more than double the 10% increase consensus analysts had expected. The results came as consumers increasingly took part in socially distant outdoor activities and exercise, and turned to Dick’s Sporting Goods for equipment, according to CEO Ed Stack in this morning’s earnings release. E-commerce sales jumped 194% in the quarter. Still, the company’s comparable sales slowed to an 11% jump in the first three weeks of the current quarter, with a slower back-to-school season weighing on results.
Nordstrom, on the other hand, missed consensus expectations on the top and bottom lines, with net sales down 53% over last year. The company was hit by both store closures and the delay of its annual anniversary sale to August from July due to the pandemic. Nordstrom decreased inventory by more than 25% as a move to mitigate markdowns and pad margins – however, the company still posted a wider than expected loss in the quarter, with adjusted losses of $1.54 per share.”