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Dick's Sporting Goods Inc. Message Board

  • corolla1974 corolla1974 Jul 11, 2014 3:33 PM Flag

    DKS down 3$ since july 3? whats going on?

    any ideas? thanks

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    • 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.

      Mawchek

 
DKS
49.48+0.01(+0.02%)Dec 26 4:00 PMEST

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