"The Market Passed Them By"

An update on DKS and ASO

From “The House Of Sport” (published January 2025): “As we compare Dick’s Sporting Goods (DKS) and Academy Sports + Outdoors (ASO), consider how Mr. Market views and values Dick’s compared to Academy; to me, it suggests ASO management should revisit their strategic priorities and capital allocation plans, particularly on new units versus elevating the base.”

The relative results at DKS and ASO continue to tell an interesting story.

While each retailer saw meaningful same store sales (SSS) and average unit volume (AUV) growth during the early days of the pandemic, that changed in 2022: Dick’s has outperformed Academy in each of the past three years, with their respective FY25 SSS guidance calling for a similar outcome this year.

As we consider the variables that explain Dick’s success, the most notable KPI’s have been in Footwear. Stellar results for Dick’s in this category, particularly in the past five years, are indicative of a broader evolution that has positioned them to compete, and to win, in an omnichannel world.