• by Sarah Mahoney , Yesterday

While rivals like Foot Locker struggle with slumping sales and weak forecasts, Dick’s Sporting Goods has plenty to cheer about. The company just posted record second-quarter sales of $3.65 billion, a 5% gain from $3.47 billion in the year-ago period. Comparable sales also climbed 5%, and net income rose 5% to $381 million.

The results beat Wall Street expectations, and Dick’s further brightened the news by raising its full-year outlook. The Pittsburgh-based retailer now expects comparable sales to increase between 2% and 3.5%. Executives say the chain continues to win share from both online-only and omnichannel competitors.

“Our sustained momentum is powered by our compelling omnichannel athlete experience, differentiated product assortment, best-in-class teammate experience, and our ability to create deep engagement,” said Lauren Hobart, president and CEO, in a call with investors. Hobart also credited ongoing investments in marketing technology, including new personalization tools.

Observers point to the company’s House of Sport format as a key growth driver. These larger, more experiential stores have “immense pulling power,” writes Neil Saunders, managing director of GlobalData, noting that many people visit just for entertainment and often end up making impulse purchases. “The concept works because it is entertaining through showcasing innovative products and new brands,” he adds. “It is an excellent example of how stores can, through sheer authority, become destinations.”

Dick’s executives are also applying lessons learned at House of Sport to refresh smaller stores. “We welcome this and believe it will provide some uplift to the numbers in the years ahead,” Saunders says. “Existing stores are solid, but some are now looking tired and a little bland in comparison, so closing this gap in experience is important.”

The pending acquisition of Foot Locker, expected to close early next month, looms large. Foot Locker recently reported a 2.4% sales decline to $1.85 billion. Hobart said Dick’s leaders have been meeting with Foot Locker employees and store associates, known as “Stripers,” and are optimistic about the chain’s turnaround prospects. “This is a team that really, really wants to win,” she said.

For Dick’s, the bet is that the same formula fueling House of Sport — bigger experiences, smarter tech and more brand authority — can extend to Foot Locker and keep momentum rolling.