Dick's Sporting Goods Inc. (NYSE:DKS) Q1 2020 Earnings Conference Call - Final Transcript

Jun 02, 2020 • 10:00 am ET

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Dick's Sporting Goods Inc. (NYSE:DKS) Q1 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Operator Instructions] Today's first question comes from Robby Ohmes with BofA Securities. Please go ahead.

Analyst
Robert Frederick Ohmes

Good morning, everyone. Thanks for taking my question. I think the question everybody wants to ask is, if could we get a little more color on the first four weeks. It's great that you gave us the down for comps. But how should we think about getting there in terms of -- depending on -- sort of maybe some color on how the reopened stores, if you just isolate those, how are they performing? And also, how does e-commerce and curbside contactless pickup change when you reopen stores? Any more color you can give on those four weeks would be great. And then I have a follow-up question.

Executive
Edward W. Stack

So, Robby, I think a couple of things. The stores that have opened are doing very well. As Lauren said, many of them -- most of them are comping positively. So we're really pleased with that. And the curbside pickup, Lauren, I think you can talk about that, but that's still doing really well.

Executive
Lauren R. Hobart

Yes. The penetration of curbside pickup continues on. And Robby, I think the way to think about it is, we were down 4%. We had 44% of our stores on average close during that period. And so, if you do the math, you can say that we're very pleased with how the stores were performing when they reopened.

Executive
Edward W. Stack

But the...

Analyst
Robert Frederick Ohmes

[Speech Overlap] stores are -- the stores that are still closed are comping kind of similar to what you put up for the first quarter? Or...

Executive
Lee J. Belitsky

[Speech Overlap] we're not recording any brick and mortar sales in it, but we are continuing to do curbside pickup. Curbside pickup, we're including within our e-commerce sales.

Executive
Edward W. Stack

The stores are doing very well, Robby. And they're comping positively, the majority of them that we've opened up. And then the e-commerce business is still doing very well. I wouldn't want to get ahead of yourself to think that with 40% of the stores closed, we're comping positively from the stores that are open or making up for those stores that are closed. That's not the case. They're doing extremely well. We couldn't be more pleased with how they're comping, but the curbside pickup and the e-commerce business continues to be very strong even in the markets where we've reopened.

Analyst
Robert Frederick Ohmes

Got it. That's very helpful. And just a follow-up question. Just how should we think about potential further write-downs going forward? And Ed, maybe how should we think about different seasons? We're moving into the second quarter here. How could that be different from the first quarter in terms of categories that may or may not pressure you like team sports?

Executive
Edward W. Stack

Yeah. Team sports is the one that we're most concerned about from a go-forward sales standpoint. We don't know if the kids are going to play football this fall or if they're going to play soccer this fall. Because those are primarily school sports, especially on the football