Warren Cheng's questions to DICK'S Sporting Goods Inc (DKS) leadership • Q2 2024
Question
Warren Cheng inquired about the ultimate potential for Fieldhouse store conversions and the SG&A profile of these locations. He also asked if smaller House of Sport formats are converging with the Fieldhouse concept.
Answer
President and CEO Lauren Hobart described the Fieldhouse concept as 'the future of DICK'S Sporting Goods,' with no set limit on conversions. CFO Navdeep Gupta noted that while Fieldhouse stores have higher SG&A for elevated service, they deliver a strong bottom-line profile with EBITDA margins over 20%. Lauren Hobart clarified that House of Sport remains distinct due to its larger, more interactive experiences, though learnings are shared across all formats.