Online Profits

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Internet Retailer: Dick’s Hints That Online Profits Will Exceed Brick & Mortar By 2017!

Well, that isn’t very surprising, especially for retailers utilizing drop shipping to offer greatly expanded offerings! Here is the rest of the story…

Within three years, the e-commerce channel for Dick’s Sporting Goods could be more profitable than stores, CEO Edward Stack told analysts yesterday on the retailer’s second quarter earnings call.

Dick’s Sporting Goods Inc. continues to build a nice book of business with its e-commerce channel along with a forecast that as soon as 2017, online retailing could be a more profitable operation than stores, CEO Edward Stack told Wall Street analysts yesterday on the company’s second quarter earnings call.

Dick’s, No. 72 in the 2014 Internet Retailer Top 500 breaks out the percentage that e-commerce sales represent of total sales on a quarterly basis, but doesn’t break out any profit or loss statements for online retailing. But Dick’s is putting a big emphasis on more e-commerce growth and profitability going forward, Stack told analysts. Though he didn’t provide any specific metrics, Stack said e-commerce will become as profitable as stores, and within three years will become more profitable than bricks-and–mortar stores.

“We’re right on target for what we think we’re going to be able to do from an e-commerce standpoint, and we are almost to the same profitability of the four-wall cost, if you will, on e-commerce as we are in the stores,” Stack told analysts. “By 2017, we will be completely ambivalent from a profitability standpoint and we think that there is a possibility that the e-commerce business will actually be more profitable.”