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Dick\u2019s Sporting Goods is trying to score with customers who want an engaging, hands-on in-store experience by pushing a big expansion of its House of Sport brand.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n At the same time, the retailer is shutting down all 17 of its remaining Field & Stream stores, with 12 of those already closed during the fourth quarter, CFO Navdeep Gupta said during a Tuesday earnings call. Dick\u2019s plans to convert the remaining stores to its House of Sport concept or large format Dick\u2019s stores by 2024.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Right now, Dick\u2019s operates just three House of Sport locations in Rochester, New York;\u00a0Knoxville, Tennessee;\u00a0and in Minnetonka, Minnesota. Going forward,\u00a0\u201cHouse of Sport will be a significant part of our future growth story,\u201d Dick\u2019s CEO Lauren Hobart said according to a Seeking Alpha earnings call transcript.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Dick\u2019s describes House of Sport as \u201ca place to connect and play.\u201d The stores typically feature interactive spaces like a climbing wall, batting cages, golf simulators and equipment services like baseball glove steaming and racquet stringing. The company plans to open nine House of Sport locations this year by remodeling eight existing Dick’s and Field & Stream combo stores and relocating an additional store.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Ten of the stores are in the pipeline for 2024. Dick\u2019s plans to open 20 additional House of Sport locations over the next two years. So far the company has confirmed those locations will include Boston, Pittsburgh, and Binghamton, New York. The retailer also plans to open a location in Chesapeake, Virginia, a company spokesperson confirmed on Thursday to Retail Dive. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n In the next five years, the retailer envisions operating 75 to 100 House of Sport locations.\u00a0Although the House of Sport concept debuted in 2021, it has become scalable and highly profitable, according to Hobart. As a result, \u201cwe are leaning into that growth,\u201d Hobart said. \u201cWe’re very, very bullish on House of Sport and what this can do for our athlete experience in our business.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n The retailer began selling its Field & Stream stores in 2019. The move was part of a push to back away from the hunting space. Dick\u2019s stance on guns, which included halting the sale of assault-style rifles at Field & Stream in 2018 <\/span><\/span><\/span><\/span><\/span><\/span>simultaneously drew negative and positive attention from gun rights and gun control advocates.<\/p>\n Also Tuesday, Dicks reported Q4 net sales of $3.6 billion, up 7.3% year over year. <\/span><\/span><\/span><\/span><\/span><\/span>Fourth-quarter comp sales grew 5.3% year over year, down from 6.6% growth a year ago. Hobart described the holiday quarter as \u201ca strong ending to another strong year.\u201d The company reported net sales of $12.4 billion for the full year. While that\u2019s less than a 1% rise year over year, it\u2019s a 41% increase from 2019.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Executive chairman Ed Stack said 2022 \u201cwas the largest sales year in our company\u2019s history.\u201d Looking ahead,\u00a0<\/span><\/span><\/span><\/span><\/span><\/span>Dick\u2019s guidance for 2023 estimates earnings per share ranging from $12.90 to $13.80 and comp store sales will be flat to up 2%.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Hobart said the pandemic pushed consumers to see health and wellness \u201cas necessities rather than discretionary,\u201d further helping to drive sales to the retailer. That sentiment may explain the company\u2019s growth in a market segment that some may still view as purely discretionary.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Wedbush analysts led by Seth Basham had a similar take.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cThe sporting goods retail sector continues to benefit from a fundamental shift in consumer behavior including increased focus on health and wellness, participation in outdoor activities and a higher interest in athletic lifestyle products,\u201d Wedbush\u2019s analysts said in a note.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Basham also said Dick\u2019s bottom line will benefit from the increase to its store footprint as it adds House of Sport locations.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Dick\u2019s is well positioned to drive market share gains in the $140 billion sporting goods industry, of which the company holds 8% market share, according to Wedbush.\u00a0Dick\u2019s also operates Golf Galaxy, Public Lands, Going Going Gone! and Warehouse Sale stores, and GameChanger, a youth sports app.<\/span><\/span><\/p>\n<\/p><\/div>\n