Dick’s Strong Relationships With Vendors and Athletes Provide a Competitive Edge

We have upgraded our moat rating for Dick’s Sporting Goods to narrow from no moat. Although sporting goods are sold through many channels, we believe that Dick’s has earned a competitive edge based on a brand intangible asset. The retailer is a key destination for consumers and athletic apparel and equipment vendors, standing resilient while many peers have shuttered. We believe consumers are drawn to its vast, on-trend product assortment and differentiated in-store experience and service model, which fosters brand loyalty. Meanwhile, vendors see Dick’s as a reliable partner for reaching and engaging with consumers, leveraging the firm’s store-within-a-store model to showcase a wide range of products, including exclusives.