Sporting Goods Sales Boom
Consumers Search for Ways to Stay Fit and Entertained
Kayaks, bikes, and dumbbells are flying off shelves this summer as people look for ways to entertain themselves and stay fit during the pandemic.
In June this year, retail sales at sporting goods stores in the US hit $5.5 billion—a huge jump from $4 billion in June 2019. Bike sales rose 63% from June one year ago. Kayak and paddleboard sales were up 56%, and golf equipment sales spiked 51%.
When stores were closed in April, sporting goods sales plunged to $2.5 billion. Now, stores have adapted and are doing much of their business online.
Dick’s Sporting Goods Reports Strong Earnings and Sales
In company-specific news, Dick’s Sporting Goods (DKS) reported strong earnings and sales for its latest quarter. The Pennsylvania-based company earned $276.8 million last quarter, making up for $28 million in inventory write-downs for the retailer during the prior quarter.
Overall sales for the company were up 21% compared to the same period a year ago. Online sales, including curbside pickup, rose by 194%.
Analysts are curious to see if the sporting goods industry will continue its winning streak. The recent sales boom may have been caused by people making one-time purchases of equipment that they will not replace for some time.
On the other hand, as temperatures drop, there may be another rush to buy indoor fitness equipment like exercise machines, and winter sporting equipment like skis and jackets.
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