Good morning. It's my pleasure to introduce Dick's Sporting Goods and to moderate our fireside chat. Today, we have with us Ed Stack, Executive Chairman of Dick's Sporting Goods. We have Lauren Hobart, President and Chief Executive. Lauren joined Dick's in 2011 as Senior Vice President and Chief Marketing Officer, and became president in 2017, and CEO in 2021. We have Navdeep Gupta, Chief Financial Officer. Navdeep joined in 2017 as Senior Vice President of Finance and Chief Accounting Officer, and became CFO in 2021. Thank you, everybody, for joining us today.
Thanks for having us.
Thank you.
It's great to see you, Ed. I think it's been, I don't know, seven or eight years since
It's been a while.
Yeah.
My hair might have been a different color back then, you know.
It's great to see you. You guys had a really great Q2, which we heard about last week. I wondered if you could start talking about what you're most excited about for this year.
Yeah. So we did. We had a great quarter. Comps were 5% on top of a 4.5%, the year before, so against a pretty tough comparison. The team, we still had a 5% comp gain. What's really happening, and we're excited about out there, is anything that's new from a design standpoint, technology standpoint, is doing extremely well. Things that have been around for a while are a little bit slower, but anything new, we're really excited about. And our team has done a great job of having those new products in the store, and they helped drive the 5% comp. And I'm happy to make a comment about what's on everybody's mind, which is the Foot Locker acquisition.
I can tell you, we closed on that on Monday, which we're really excited about. And we're really enthusiastic about Foot Locker. We see a huge opportunity here, not only from what we can do from a global standpoint, but what we can do here in the United States. Foot Locker's always been a terrific brand for so long. It's been a little bit - their performance has been a little bit. They struggled a little bit over the last couple of years, but we see kind of what needs to be done, and it's really basically into Retail 101, to have kind of the right product at the right place, at the right time. We think that they've got a great culture in their stores.
The Striper culture in the stores is one of the main reasons why we bought them. These young men and women who work in the stores, they love Foot Locker, they love sneakers, they understand sneakers, they love to talk about sneakers, and we think there's a big opportunity, and we're very excited about that. It's gonna be a bit of a the next couple of quarters are gonna be. We're gonna kind of clean things up, get the real assessment of what's going on, and we can give you a lot more information on our Q4 call as we go into 2026.
Great.
But we're pretty excited about it.
Thank you. Ed, you mentioned newness and innovation, and that's definitely clear when you enter your stores, and I wondered if there was a way that you could speak to how much you think is just the health of the sporting goods industry, just all of the increased consumer interest, versus how innovative the brands are, versus the muscle you have, which is the merchandising.
Yeah.
How is that all playing out?
I think it's a combination of all.
Mm-hmm.
So right now, we are at... There's such an intersection between sport and culture right now, and we're right at the center of that. So there's some brands who've come out with some really terrific product that's really kind of caught the consumer's interest, whether that's Nike's new running construct, which has been just fantastic, you know, around Peg. The structure in Vomero has been great. Some of the brands, the hardlines brands around from a diamond sports standpoint on some of the new bats that have come out, have done really, really well from a launch standpoint. And it's hard to believe some of these bats that we're selling are $500 apiece.
So these are not inexpensive products, and they're just flying off the shelves, that these kids want this particular product. So a number of the brands are doing a great job from an innovation standpoint. Sport is really at... we're at this intersection between sport and culture, which is gonna last for a while here. We've got some really terrific things coming in this country from a sports standpoint: the World Cup in 2026, the Olympics in 2028. And the way that the World Cup has been structured, I think, is just genius, that it's all of North America. The matches are gonna be played in cities all across the country, so from the first match in LA, the final in New York, and so many markets in between, Dallas and Atlanta and Boston.
And so now, all through these weeks of the World Cup, these markets are gonna be all jazzed and focused on what's going on in the World Cup, so it's not gonna be just, "It's playing in some other town for the entire matches. It's coming to my town, these matches, these players." And it's gonna be, it's gonna be great for our business. It's gonna be great for soccer, and I think it's gonna be great for soccer long term in this country. And, so there's a lot to be excited about.
Great. I would ask you maybe next about the health of your consumer, but if $500 bats are flying off the shelf, the consumer's just fine.
Yeah.
Yeah, yeah.
Yeah.
I'll just build on Ed's comments about the importance of sport and culture, but our consumer has held up so well, and as you pointed out, 5% comps, but it's the sixth quarter in a row we've had over 4% comps, and really exciting that the newness and that growth is coming across the entire portfolio. Hardlines, softlines, Ed mentioned Diamond Sports having launches in a way that footwear has always had launches, but we're seeing growth across every income demographic, which is really terrific. We're not seeing trade down. People are absolutely voting that these categories that we serve are important, that the differentiated product that we have is really appealing to them.
Then we are building a better mousetrap in terms of our in-store experience, our online experience, our House of Sport concept's doing incredibly well, our Field House concept's doing incredibly well. So I just think we're in a position to continue to gain significant market share. The consumer is doing great, and the momentum in the business is quite strong.
If we can maybe focus on market share a little bit, is there any specific opportunity where you think that there's still low-hanging fruit with market share?
You know, the interesting thing is we are such a large, we're number one sporting goods retailer in the U.S., soon to be in the globe, but we only have 9% market share. So if you look at it, there's significant market share to continue to get, and we've been focused this year on specifically driving our footwear business. This is pre-Foot Locker, driving our e-commerce business and repositioning our entire portfolio. But there's pockets of market share everywhere to go after: online, in stores, and we're just gonna continue to push it and drive it.
If I could maybe switch the conversation to tariffs. It seems like you've been able to manage pretty well, you know, so far, but also I don't think we have fully seen a lot of the price come through yet. So how would you characterize your, you know, your inventory position and how you're positioned into the second half in this new environment?
Yeah, so, so inventory position, we feel fantastic. If you look at it in Q2, we finished with 7% growth in inventory, and our expectation is that, first of all, the inventory is really, really clean. We keep a very conscious focus around the clearance levels, and those were at historic lows. So inventory and the newness and innovation is the one big focus for us. Overall, from a quantitative perspective, 7% growth in inventory on 5% sales growth, we feel great about it. What we have said is, we expect our inventory growth to continue to moderate as we go into the second half. The focus for us around tariffs is working very closely with the national brand partners and the manufacturers. The Q2 impact, if you look at it, there was negligible impact from the tariff.
But as expected, as every other retailer has said, that this will grow as we look to the back half. But we feel like, you know, the pricing capabilities that we have built to be really surgical, and our partnership with national brand partners will allow us to continue to be really mindful, balancing what is the right thing to do for our business, as well as balancing what is the right assortment and the innovation we wanna showcase to our athletes.
You mentioned just being really clean on inventory, and I know there's been an increased focus to just move the inventory out to make way for new inventory, which has been a really successful strategy. But I was curious how you balance that. Your margins continue to be robust and expand, yet it seems like you're, you know, clearing inventory a little bit faster. So how are you managing the push-pull of that?
I'd say it all starts with what do you buy and how you buy, and the partnership that you have with the national brand partners. That's where I feel like our merchant team do a fantastic job. One, really, really curating the assortment and really going being meaningful in what we are buying and how deep do we buy there. The second is, you know, there is a constant level of discussion that happens with the national brand partners. And then, at the end, you always have some mistakes, and that's where the focus that we have had around keeping the inventory clean, having the Going, Going, Gone! chain. There are 50 stores today that we have, which are clearly focused on handling some of that clearance product that we are able to handle through that. The work that team does is phenomenal.
And with all of these things, if you look at it in Q2, we grew our gross margins by 30 basis points, and that was on top of over 200 basis points of gross margin. So that's the balance that the team has been doing a fantastic job at.
Could you maybe talk a little bit about the Dick's Deals Day event in July, and just what the thought process was behind that?
Yeah, I'll take that. So, this is something we've been doing now for several years. There's a lot of online shopping at that time of the year, around Prime Days, and our Dick's Green Day is a time for consumers to get some amazing values. We don't do anything... You know, we've been so really surgical about where and how we invest, so we don't have enormous site-wide promos anymore. We're really surgical and targeted, and we had great success for those few days.
If we could maybe move on to your vertical brands, that's been yet another very successful strategy. Could you maybe talk to any change in the number of customers trading into to the vertical brands, this year, and how do you think about the opportunity going forward?
Yeah. Our vertical brands have been great. They've continued to grow. They outpace the company as a whole. We've got margin rates there, you know, 700 to 900 basis points higher. Our vertical brands, VRST, CALIA, DSG, Walter Hagen, have continued to grow, and they've now got a real following out there in the marketplace. So it's not just I come up and pick something up that's inexpensive from a vertical brand standpoint. Some of these vertical brands are really very premium-
Mm-hmm.
... are priced at kind of what the national brands would be, and they've now got a real following. We had one meeting, and one of the guys walked in and said, "Your VRST product, I buy it a lot. I love your VRST product." And the DSG brand has just been great as a real family brand. Our team has done a great job marketing that brand and what we bring it to life in the store. You know, our vertical brands will continue to grow.
And some people have asked us what the percentage of that, of our business can be, and it'll grow a bit as a percentage, but I don't think it'll ever get to be super high because our footwear business is such an important part of that business, and we're not gonna be in the vertical brand footwear business. There are certain, you know, baseball bats. There's a real technology involved there, and the kids wanna be playing what is being played on the College World Series or what, you know, the wood bat tournaments of what the pros are playing. So, it's got its niche, and it's very helpful and will continue to grow, and it will help our margins.
Do you wanna talk about Maxfli and the success we're having there with Ben and?
Yeah, this and our Maxfli ball has just been great. So we've got a number of people, a couple of people on tour playing it. Lexi Thompson's playing it, Fred Funk's playing it, and Ben Griffin is playing it. And Ben won twice on tour with it this year.
Mm-hmm.
With the marketing around that and the popularity of Ben, that business has just gone right through the roof. We couldn't be happier that he's now playing in the Ryder Cup. So we've got our Maxfli ball being played in the Ryder Cup. And Maxfli is a brand that has a great history. It's won 13 majors, over 100 tournaments. People have won with Maxfli before we got this thing heading back on tour again. But this has been a rousing success, and our team did a great job with it. And all you golfers out there, if you haven't tried it, try it. You'll really love the ball.
It's the best ball.
Yeah.
This is a good segue just to golf. I feel like maybe golf doesn't get top billing all the time, but it's a huge part of your business. Just how do you think about the category going forward? Certainly, the entire industry has had a resurgence, and what does the innovation cycle look like?
The golf business has been... There was not many good things that came out of COVID.
Mm.
Golf was a real beneficiary of COVID because people got to be outside, and as some new people, a number of people came into golf, they found that, "I really like to play golf," and it stuck. So, the golf business has been great. A lot of people have kinda got an opening price point, set of golf clubs, if you will, went out and played it, and now we're starting to see that cadre of golfers come back and upgrade their equipment. And there are some real technology advances that have come on out there between what's going on with drivers and hybrids and high-lofted fairway woods, and the innovation cycle in golf is really very good. And so our golf business has been great.
We expect that's gonna continue for some time, and it is our third largest.
Mm-hmm
... department.
Yeah.
We also think there's a huge opportunity from a golf apparel standpoint of how we merchandise golf apparel in the stores, going forward, and we think that there's a real upside from a golf apparel standpoint going forward.
Just to kinda close the loop, I know you have the Golf Galaxy Performance Centers now. Is there anything you can maybe update us on, you know, what you're seeing with that?
Yeah. They've been really great. You know, our golf business is really a roll-up of a couple of golf stores that we did originally, and then it's a roll-up of Golf Galaxy, which was started in Minneapolis, and then a number of Golfsmith stores when they went out of business. As we looked at this, it was like, these stores are good, but they're not great. They're not kind of on the same par of what we should be doing and what we're doing on the Dick's side, so we developed the Golf Galaxy Performance Center, where we've got real performance statistics in there. We've got a better apparel assortment. We've got a broader service assortment.
We're giving lessons, and the Golf Galaxy Performance Centers have, knock on wood, worked very well, and we'll continue to open these stores.
That's great. If I can maybe move down to P&L and talk about margins for a little bit. Obviously, it's you know, been a big discussion about how much higher your margins are today than they were pre-pandemic. Of the drivers you've listed in the past, such as differentiated product, what do you think has been the biggest driver? What do you think can be, you know, the driver going forward, and then we go from there?
Yeah. So we have talked about consistently three big drivers of the gross margin expansion. When you look at 2019 versus 2024, the three big drivers, first and foremost, is the differentiated product. Access to the differentiated product allows you to get the full price. Selling gets you access to some of the product that does not go on any kind of promotion, and you are a little bit immune to the promotional intensity that may be within the marketplace. So that's the first driver. Second, we talked about the work that our vertical brand team has done over the last several years. And sometimes people miss the fact that Field & Stream used to be our largest vertical brand product when we look at 2019.
We have exited that category and not only replaced that, all of that sales into the new categories like DSG, CALIA, VRST, but these have much higher margins than what Field & Stream margin used to be. The third one, I will put it, is mix, and within that, there are two parts of mix.
Mm-hmm.
One, we used to have Hunt, which was a big part of our business. Definitely significantly lower margin than where the operating margins or the merch margins of the company are. And then the second is the work that has been done through our clearance management and Going, Going, Gone!, and the pricing and promotion capabilities that we have built. So those three, we continue to see as the drivers of the gross margin expansion, even into the future. The two additional things that we have started to talk much more extensively, actually, since late last year and into this year, is the work that the team has done around GameChanger platform. GameChanger platform is probably the best platform that is out there in the youth sports ecosystem. And that platform, $100 million of sales last year, very profitable.
We expect that business to grow to $150 million. This is a SaaS business with recurring revenue, so it has margins, not that of a retail product margin. This is a true SaaS business. So that, as it continues to become bigger and bigger part of the portfolio of the business, that drives the gross margin expansion. And then, there are retailers that are ahead of us in this journey, but the work our team has done on Dick's Media Network or the Retail Media Network, there's nobody that has an asset that we have from the athlete database, access to the customer, and the customer who walks into our store, on average, has more than one brand in their basket.
To be able to really understand the basket and the interactivity of that customer with us, we are uniquely positioned to be able to leverage that data to grow the Dick's Media Network. So those are the two new drivers, and we believe that these will continue to be the drivers of the growth as for our margin going into the future.
I believe both are contributing to margin already, but especially with Dick's Media Network, which does seem to be maybe in an earlier stage, when do you see that becoming more needle moving?
Yeah, I'll take that one. We have. You're right, we've been speaking more publicly about GameChanger and the revenue and the fact that it's growing 40-plus% CAGR every year. The Media Network is a step behind, but catching up quickly and really leveraging the power of GameChanger so that we have this incredibly unique asset with the Media Network. I think, we've invested in infrastructure, technology, reporting for our brand partners and for the people who will be investing in the Media Network. We've created a much better mousetrap, and we're ready to go. So we've got a sales force now. We haven't guided to how much, when, and where, but I would expect it's going to become a more meaningful part of our business going forward.
And-
Maybe I'll build on that.
Sorry.
I think that this is another unique opportunity, right? When you walk into a House of Sport location, and I want you all, when you get a chance, we'll slowly expand this even further. The way we are bringing the Dick's Media Network together in a House of Sport location, where you can not only interact with the product but actually see the information about that product right in front of you when you are in the store, will be another differentiating capability of on the Dick's Media Network and retail locations.
So that's, that was actually kind of my next question. So it's not just traditional advertising you're gonna see on a, you know, the DICK'S website. It's gonna be the website, GameChanger, and then in-store as well.
And the fourth component is off-site completely. So we leverage the Dick's Media Network to buy media on behalf of our partners-
Mm
... out in the, so, you know, be it Meta, be it whoever they're buying from, we can buy the data, anonymized, tokenized. We take our data, rather, and buy the media so that they can be much more targeted.
Great. That's great. I just wanted to make sure, I asked a question around back to school. Just now that we're in September, New York just started today, but I think most of the country's been in school for a while. Just how would you characterize the back-to-school season so far? How much of an indicator is it for your holiday business?
Yes. Q2 has a chunk of back to school, and Q3 has a chunk of back to school.
Mm-hmm.
I'll only talk about the Q2. But with a 5% comp, we felt really great about the trends in back to school, and we saw that broad base of growth across footwear, apparel, team sports, all of the back to school and back to sport categories. We're really enthusiastic. Holiday, I feel great for all the same reasons. Different categories, but some, in some cases, not all. But we have incredible assortment coming down the pike. This newness that we've been talking about, the innovation we're seeing from our brand partners. We have a new business, a trading card business that we're working on with Fanatics that we're very excited about. Very small right now, but incredibly giftable.
Yep.
We're bullish. That's why we took our guidance up.
Mm-hmm. Mm-hmm. Weighted vests, I think that's gonna be on the Christmas list.
Weighted vests?
Weighted vests, yeah.
Oh, for sure. Yeah.
We had those.
We have... Well, I mean, we,
We actually those.
Yeah.
We were early on that one.
Yeah, we were.
We were.
I see them everywhere now.
Our last question before we go into kind of our rapid-fire questions, just around unit growth. You're actually not changing your units, not opening new units, but maybe square footage is increasing a little bit with the House of Sport. So can you talk a little bit about how you're thinking about the House of Sport and Field House mix going forward, and how many locations will ultimately open in both concepts?
Yeah. So like you said, you know, we don't anticipate significant amount of changes in the total number of units. Exception might be the Golf Galaxy growth opportunity that I talked about. Within the core DICK'S, we think that the unit growth will be relatively flattish, but you will see the square footage increase. Because one of the things that we are clearly focused within the company is to make sure that we don't have a tired old chain. We wanna make sure that we are investing in these, in the retail square footage, in driving the innovation and kind of a retail theater and the experience with our athlete. What we have shared is, we will open 16 House of Sport locations this year, and we have a significant number of those being opened in Q3.
So those of you that are in New York, you will get a chance to experience our latest House of Sport opening here in New Jersey.
Next week.
In the next week.
It's gonna be huge.
We are excited about that, to be able to bring that to such a big market. We have 13 planned openings in Q3, and we will finish by the end of this year with 35 House of Sport locations. Our plan for next year is approximately the same, around 15 to 16 House of Sport openings next year, and our long-term aspirations till 2027 that we have shared is to get to 75 to 100. The opportunity outside of House of Sport, I know somebody, one of the investors called out that you all talk so much about House of Sport, you don't talk about Field House. We couldn't be more excited about the Field House. As we say, Field House is the workhorse, right? The vast majority of our portfolio is 50 to 60 K boxes. Field House's stores are doing fantastic as well.
We have taken some of the core learnings from the House of Sport platform and cascaded and brought them to life in our 50 K format. Going forward, we will continue to open all the 50 Ks in the Field House format.
Mm-hmm.
So all the new store openings or relocations or conversions will be to the Field House format.
We have five questions we're asking every company that sits on stage with us, and so we've touched upon some of them already. But in terms of your expectations for the environment in the second half, and you just mentioned you raised guidance, but in terms of the health of the consumer, second half versus first half, do you expect things to be the same, better, or worse?
I would say
No worse.
No worse. I was gonna say same, so same. Yeah.
Yeah.
Same.
Yeah, yeah. Okay, same. Yeah.
Same.
Half full, half empty.
Yeah.
With pricing, and we've talked about this a little bit, too, but in places maybe you have taken some price on like for like, not necessarily with new innovation or anything, have you seen any elasticity response? Are you anticipating any of that in your back half results?
Very, very small changes that have gone in, very selective, very surgical, so we are keeping a very close eye on what is happening to the demand elasticity. So more to come, but, we are very conscious on those changes.
With regards to inventory, we've heard, you know, some retailers talk about a pull forward of inventory to take advantage of price or just to ensure that they're gonna be in stock. What is your expectation for inventory growth in the second half?
Sorry, go ahead.
No, go ahead. We've been signaling, and we continue to say that we are going to have decelerating growth in our inventory. So our inventory actually was a significant investment that we made in the past several months because we had some out-of-stock issues. We wanted to be more size, color appropriate. We wanted to be more regionally relevant. But that tapered this past quarter, as Navdeep said, and we will continue to see it, that growth narrow.
Okay. And then with regards to margins outside of tariffs, we've been asking about your expectations into 2026 for freight, wages, and materials. Will that be better, same, or worse?
TBD. We'll be keeping a close eye. As you know, there is a lot that will be changing in the next six months, so we'll see, but the teams do a fantastic job. Lauren and I always, and Ed, talk about that we have become an employer of choice, that there is so much amount of attractiveness in coming and working at Dick's Sporting Goods. Our retention rates are phenomenal right now. More and more people, the engagement within our stores is phenomenal. In terms of freight, you know, we feel good about the capabilities, but we'll let the landscape play out.
And then, with regards to the competitive landscape, again, we've touched upon this a little bit, but we have seen an increase in door closures and bankruptcies this year outside of sporting goods, but across a lot of retail post, I think, COVID surge. Do you think market share consolidation will speed up, slow down, or be the same in 2026?
I think it would speed up
Yeah
... from a consolidation standpoint.
Mm-hmm.
I think tariffs and, you know, could have an impact on it. I think, yeah, so I think it'll speed up.
And just in our last couple of minutes, I'm not sure if I'm the longest analyst that's covered Dick's. I think I am now, at almost 20 years. But in your opinion, there is such a difference, I think, between some of the narrative pre-pandemic with regards to the business versus where you are today, whether it's vertical brands, the amount of innovation. Just what do you think has been kind of like the change agent to get to this place in the company's history versus maybe 10 years ago?
You go.
You want me to go?
Yeah, you go.
I think we've so everybody kind of looks at the time point of, you know, pre-pandemic, post-pandemic. But as we were coming out, well, before the pandemic started, we were in the process of, as we talked about, changing virtually everything we do. You know, after the shooting at Parkland, we decided we're done with the gun business, didn't want to be involved in that anymore, and exited. You know, that whole outdoor business was roughly $1 billion in business. The gun business was a big part of that business. As we looked at this, we said, "You know, we don't want to be in this business any longer." And as we were exiting that business, we said, we only had...
The margin rates were roughly 1,700 basis points lower in that aspect of the business than the company average. We said, "If we can, if we can recapture roughly 60% of the sales, we'll be fine from a gross profit dollar standpoint." So we tested 10 stores, and what we found is we didn't capture 60%. We captured 105%.
Mm-hmm.
So at that point, we said, "Okay, we've, there's something really going on here." We did another 25 stores, and at that point, we started to look and change. We, Lauren and, and I've talked about, we changed virtually everything that we did.
Mm-hmm.
So how we marketed, we weren't doing the circulars in the newspaper any longer. We really went to much more brand marketing, more digital marketing. We got out of the gun business. We expanded into the team sports business. At that time, we started to make the investments in our footwear business-
Yeah
... and got out of the shared service footwear with all the product on the floor, went to a more premium footwear business, which gave us access to new products.... that Nike and some of the brands wouldn't sell to us. So we changed our entire footwear business. We had changed our, what we were doing from an apparel standpoint. We really leaned into these vertical brands, launched, got really behind CALIA, launched Verse, got into the DSG business. We had licensed some product from Reebok. We said: We're gonna do this ourself, and we did the DSG business. So we, we changed virtually everything we did, and then the pandemic started. And we had already started... If you take a look at our, at our sales progression, before the pandemic, we had had several quarters that had started to really ramp up.
Then the pandemic hit. We all did what we needed to do to get through the pandemic, and then as the pandemic was over with, our business went sky high. Part of that was because there was such pent-up demand, and people really thought that we'd be a pandemic, you know, a beneficiary, and the business would start to go back down, and the margin rates would start to go back down. What they didn't understand is, we had already started this work before the pandemic to change what we were doing, and it didn't slow down. You know, the business continued to go up. We maintained those margin rates. All the things that we did were paying those dividends. So our footwear business was entirely different, and we had access to products that we didn't have before.
That is, Navdeep said, was that differentiated product that didn't go on sale, so the margin rates went up. What we did with our vertical brands, with those higher margin rates, and that penetration moved up, so the margin rates went up. And what we put in place were very durable, sustainable changes that would move that margin rate. And then we started talking about, and I won't go into the whole story about it, but we said: Okay, we've got to do this store, look at the store of the future. And we'd kind of started this Store of the Future project a few years before the pandemic, and we designed the whole thing, and sometimes things don't translate from paper to reality the way that you want them to.
And we built parts of that in our lab store down in the office, and we walked through it. We said, "Not different enough from what we're doing today." So we scrapped it. We came back, now this is probably six or seven years ago - Mm-hmm - with the whole idea that we need to build this ecosystem of the future, and the whole precept of is we need to build the concept that will kill DICK'S Sporting Goods. We need to build the concept that if somebody else built this store across the street from us, we'd be out of business, and that's what we did with House of Sport.
Now what we've done with House of Sport is we've taken some of the key elements, the most successful elements of House of Sport, and put those into the into our Field House concept, which is our footwear area is roughly 50% bigger than what a traditional DICK'S store was. We've got House of Cleats in there, and some of the places we've got some interactivity, like, similar to the climbing wall. So you go back over the last 10 years, Kate, we do virtually nothing the same as we did back then, and it's been it's been very successful. The team's done a wonderful job, and and we'll continue. Our plan is we'll continue to innovate, and and we'll have another conversation 10 years from now that we've changed a whole lot 10 years. Mm-hmm. Yep.
In the future from what we do today. Yeah. It's an amazing story. Thank you so much. Appreciate it.
Thanks, Kate.
Thank you.