Dick's Growth Strategy Relies on Diet of In-House Brands and Digital Pie
Dick's Sporting Goods' (NYSE: DKS) growth strategy since at least 2017 has been to develop and focus on its own brands -- CALIA, Field & Stream, and Tommy Armour Golf Clubs are three examples -- and rely less on big names such as Nike (NYSE: NKE) and Under Armour (NYSE: UA) (NYSE: UAA). By May 2018, the company's own-brand portfolio seemed to be a winning one, as growth outpaced total sales with double-digit comp sales.
At that time, Dick's CEO, Edward Stack, predicted that business would hit $2 billion in sales in the near future. Stack explained:
Our private brands remained strong, growing double digits. As a percent of total net sales, our private brand sales increased to approximately 14% compared to 12% last year. In 2019, we expect continued strength as our private brands will play an important role in our space allocation and assortment strategies.
Source Fool.com
