Dick's Sporting Goods (DKS 8.15%) reported its first-quarter earnings today, and while business was negatively impacted by store closures due to the COVID-19 pandemic, its e-commerce business has been building momentum. The company said e-commerce sales increased by 110% in the quarter versus the year ago period, including its new curbside contactless pickup service.
Amid a current environment of uncertainty, the company expressed optimism, saying it had a strong liquidity position at the end of the quarter, with cash and equivalents of $1.5 billion. Chairman and CEO Edward Stack also said the company is confident in its business. "We believe coming out of the current crisis, health and fitness will become even more important to the consumer," he said.
The company said comparable store sales fell almost 30% in the first quarter, as it began closing stores on March 18, 2020 in reaction to the pandemic. The drop in same-store sales was despite a 7.9% increase through March 10, 2020, prior to the pandemic impacts.
Dick's said e-commerce sales in the first quarter represented 39% of total sales -- triple the contribution of the year-ago quarter. The momentum has continued into the second quarter, the company said. Through the first month of the current quarter, e-commerce sales are up over 250% versus last year.
With 80% of company stores reopened as of May 30, 2020, Dick's said it believes it is in a "position of strength" looking ahead. It said it would "turn our attention to gaining market share for the remainder of 2020 and positioning our business for profitable growth in 2021."