DKS is one of my major holdings, good fundamental, the down draft after earning release was a gross over reaction.
Please anyone from DKS let mgmt know that this is a sickeningly low Insider-takeover offer. Yes, Sport Chalet Sr. Mgmt has locked up a lot of stock including the super-voting SPCHB shares, but a takeover offer at $3+ would raise a few eyebrows. DKS could have made Sport Chalet profitable. Please don't let Sport Chalet Mgmt make a travesty of a low takeover offer!!
Fills in California for DKS and should have been done a LONG time ago. If DKS chooses to pass, Leonard Green & Associates (Sports Authority, Oshmans, Big 5, SportMart) should make a go of it.
Great Luck to all...............
DKS' Q1 earnings conference call was unusually unsettling with the news that management did not know where the "bottom" was in the deteriorating golf market and that ammunition sales were correcting after many quarters of customer hoarding. It's been well-reported that golf and hunting combined comprise 30% of their revenue. The two issues will take some digestion (and fixing) before things move up to any great extent. On a positive note, all other categories performed very well to expectations.
I'm a believer that ammo sales will settle as they anniversary prior quarters. It doesn't hurt that shooters burn through ammo at a steady rate. I've seen no reports that shooting sports are turning down. It's the decline in golf that caught so many analysts off guard. Numbers of people who quit the sport in 2013 range from 380K to 1MM. That's quite a hit, especially when the trend shows no sign of a bottom.
Management is doing the right thing by curtailing space dedicated to golf, blasting out over-stocked inventory (bought a new Tailormade R1 driver myself!) and expanding space for growing areas like women's and youth sports apparel. Margins in these areas are higher than golf, too, which many people don't consider. But what comes of Golf Galaxy? No answer there.
The whole industry is affected so I give no credence to those proclaiming the end of DKS. Most have an emotional ax to grind that has no place in the discussion. DKS sells popular name-brand merchandise through an outstanding brick-and-mortar presence as well as a well-regarded ecommerce site. In time, perhaps several quarters, I expect to see these bumps resolved. Expect volatility in the meantime.
Thank you for being knowledgeable instead of saying something ignorant like 90% of the users on here.
Good analysis and I agree with it but I think the reason it is down in the last two weeks has more to do with the fact that someone (or maybe two people because it was in huge blocks about a week apart) bought almost 10,000 July 45 Calls that expire tomorrow.
they are going to have to sell off galaxy if they want to continue positive comp "reporting' trend. I don't believe that they separate out each division (i.e. field and stream, GG, DKS stores, and Runner concept. as far as apparel expansion is concerned, I agree that's there more opportunity to do that, but now you are looking at CapEX to refixture stores to reduce so you can expand golf.
Will build me a position in this stock as it has great fundamentals, solid cash flow and good growth prospects. Their stores are always crowded and I think the stock is way undervalued at this level and a strategic will get into the mix is my guess very soon. They have a good dividend to boot! Good luck and do your homework, but I am long and buying in here.
Sentiment: Strong Buy
I completely agree with you. People are reacting negatively because the word layoff generally has a bad connotation but in this case it is a good choice and the company is making the right decisions.
Sentiment: Strong Buy
this is that second test of the lows I predicted. Buying soon, may wait until after earnings, could be cheaper. I think it will be stronger into better seasonal months like most retail
Visited the new Golf Galaxy in Las Vegas. A total waste of retail space, footprint is too large to sustain with a shrinking customer base. The writing is on the wall, not long before these stores close the doors. The store is not designed to compete on any level, and now PGA professionals gone! The management is average at best, and a boring experience. All these vendor shops with the lightss off?? What is the identity? This reminds me of a gas guzzling car that needs to be replaced. I am re-thiking my exposure in DKS.
should bounce for few more days into earnings. We'll see $44.50 by the end of the week. I would not go through earnings.
and what the stock is gonna do after that...it had a big fall after last earnings...stock is close to 52 week lows right now...play earnings or wait until after...unbiased opinions only please...thanks in advance...
IMO based on other retailers I think they will come in short of the estimates. Golf and outdoors based on other retailer results is still off.
My guess is the ODDS favor DKS earnings falling within the $.62/.67 guidance range stated at the last CC if not a small beat. I base this solely on management's good track record of meeting/beating guidance over the years...but we know these aren't normal times. Remember original analyst consensus estimates for Q2 were $.82. I'm sure management put a great deal of thought into the given range with full knowledge of weak ammo sales,the huge decline of golf and reallocation of floor space to better selling SKUs..
If DKS falls short of Q2 guidance AND they provide weak future guidance, the PPS will be punished. An optimistic outlook will do wonders since sentiment is so bad. JMO.