Dick's

   #1  

luckystrike

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...are going hard despite all the talk of gun owners taking their business elsewhere


Dick's Sporting Goods – The sporting goods retailer beat forecasts by 7 cents a share, with adjusted quarterly profit of 52 cents per share. Revenue also came in above forecasts. Comparable-store sales fell more than expected, but Dick's also raised its full-year outlook largely :) above Street's forecast.
 
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luckystrike

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Yeah that's noble and all, but we all would've been just a little bit content with a headline reading 'Dick's bottom line gets hit with gun owners departing en masse' :)
 
   #5  

chandler

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I went to several stores 3 or 4 years ago and in my opinion they were already out of the gun business, just not officially.
 
   #9  

rumble phish

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Gun sales are a fraction of their business. Gun owners won't affect them nearly as much as Amazon and Walmart. Just like every other large Sporting Goods retailer, their run will end soon enough. The only sporting goods retailer I've seen survive is Big5, because they deal in low cost, discontinued stuff. Half of Big5's inventory are product lines that are 2-3 years old. They get'em cheap and sell'em cheaper than the newest lines. Their key demo are Soccer Mom's and teams. They are successful and will be around for some time. Dick's, will go the way of Copeland's and Sports Authority.
 
   #11  

pimpslayer

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Dick's will lose a lot of business down in the SE and the Deep South.

We have Academy Sports...no need for Dick's.

I used to buy a lot of Gift Cards from Dick's for the family. They were used for hunting supplies, golf supplies, baseball/basketball and football gear.

I never bought anything there for myself, but a lot of my money washed through there in the last 15 years. No more...
.
 
   #12  

Master-Cylinder

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A friend of mind went to Academy last week, said if you go anywhere near that place Friday, Saturday or Sunday, they are lined up at the gun counter three or four deep!

I purchased a 12ga. Looter Shooter at Dicks aboot six years ago. The manager had to walk me out of the store with it and handed it to me once we got in the parking lot. I guess they never considered I could just load it and head right back in. :lol:
 
   #14  
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luckystrike

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Dick's Sporting Goods — Shares of the sporting goods retailer dropped 10.59 percent after the company reported weaker-than-expected full-year earnings outlook. Dick's earned an adjusted $1.07 per share in its fourth quarter, beating the $1.06 expected by Refinitv. The company's gross margins contracted more than expected, falling by 120 basis points.

Wonder what caused the margin evaporation?
 
   #15  

Hapo

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...chickens coming home to roost...
 
   #16  

Austin_F

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Alienating your customers didn't work out so well
 
   #19  

rumble phish

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Amazon is more than likely a greater reason for Dick's not meeting their margin goals. As much as we'd like to think it was alienating their customer base, it really wasn't because the customer looking for a semi-auto "sporting rifle" really isn't their base.
 
   #20  

Hapo

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...no, but I would never buy anything else there neither...

...Amazon's tyme is coming...
 
   #21  

gobrian77

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It wasn't 'alienating their customer base'- they actually did really well in 2017 after the gun controversy (though 2018 was flat and they got killed in Q4, but it was a down year for the Dow). What's unusual is that they're down after reporting decent earnings that beat expectations, but there are reasons. It ain't easy to make a profit with a brick-and-mortar store when online retailers like Amazon and Target sell the exact same stuff- Dick's profit margins are down even though their sales are up.

Dick’s Sporting Goods Stock Is Down Because Solid Earnings Aren’t Enough
 
   #23  

gobrian77

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I read what you wrote, but I noted different points and expanded on them (mostly to show how they had a big boost in business after they ceased some gun sales, so it's obviously not 'alienation' based on that particular move), and I added the Barron's article.

The question is whether Dick's will rise, or continue to show limp performance.
 
   #26  

CZLoco

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I don't mind if they do well... my only interest is whether I contribute to it.

.
I have zero care whether a company decides to stop selling guns and/or ammunition.
But I dislike when a company takes a publicly political stance on something.
Even if it's FOR something I can appreciate.

Unless it's a local, small business.
Mom & Pop stores should be governed by themselves, not the masses.
If Joe's Crab & Donuts wants to take a political stance, then so be it.
If their business fails as a result, then that's their problem.

I guess it's a hard thing to say "I approve of this or I approve of that".
It would suck to see a mom'n'pop store only allowing whites and then flourishing as a result. Or only allowing gays while straights aren't allowed, and then flourishing.

Anyhow, I guess my point is that a company large enough to be publicly traded on the stock markets, should not get involved in politics.
Do your thing and shut up about it.
Kinda like some massive chain Christian stores (that fabric store, the chicken place, etc) that are closed on Sundays.
AFAIK, most or none of them make any sort of "in your face" public stance about it. They just do it.

I typed a lot more than I meant to.
 
   #28  
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luckystrike

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I'm wondering if the margin erosion is due to their exiting firearms sales? Does anybody know what the margins are on firearms?

This is another take on the discussion in a different thread about there being really only two types of business: high volume & low margin (Walmart) or low volume & high margin (Apple & Porsche)

It seems to me that firearms are a high margin business, so Dick's would have had to erect their sales volume or penetrate alternative markets to avoid flaccid profits.
 
   #29  

CZLoco

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I'm talking out of my ass.
But my assumption would be that fire arms are a medium-margin bizz, what with so many companies in the market and only a certain type of buyer.
So as a business, you probably have to really stay on top of market shifts to stay in business for long.
 
   #30  

Hapo

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I have zero care whether a company decides to stop selling guns and/or ammunition.
But I dislike when a company takes a publicly political stance on something.
Even if it's FOR something I can appreciate.

Unless it's a local, small business.
Mom & Pop stores should be governed by themselves, not the masses.
If Joe's Crab & Donuts wants to take a political stance, then so be it.
If their business fails as a result, then that's their problem.

I guess it's a hard thing to say "I approve of this or I approve of that".
It would suck to see a mom'n'pop store only allowing whites and then flourishing as a result. Or only allowing gays while straights aren't allowed, and then flourishing.

Anyhow, I guess my point is that a company large enough to be publicly traded on the stock markets, should not get involved in politics.
Do your thing and shut up about it.
Kinda like some massive chain Christian stores (that fabric store, the chicken place, etc) that are closed on Sundays.
AFAIK, most or none of them make any sort of "in your face" public stance about it. They just do it.

I typed a lot more than I meant to.
...you did good...
 
   #31  

rumble phish

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I'm wondering if the margin erosion is due to their exiting firearms sales? Does anybody know what the margins are on firearms?

This is another take on the discussion in a different thread about there being really only two types of business: high volume & low margin (Walmart) or low volume & high margin (Apple & Porsche)

It seems to me that firearms are a high margin business, so Dick's would have had to erect their sales volume or penetrate alternative markets to avoid flaccid profits.
Firearms themselves are a low margin item for retailers. The margin is made up with ammo and accessories sales. It's kind of like a hardware store or a gas station/convenience store business. You make very little margin on the product(s) you primarily sell, but you make it up on the nails and screws/sodas and candy bars.

With stores like Dick's, which cater primarily to the athlete/team sports, outdoor/hunting sales are a distant second or maybe even third in priority. It's the clothing/shoes/gear they sell that really moves (HUGE margins in athletic shoes).

A third point to this is that they don't necessarily sell to "shooting enthusiasts". They sell to hunters. Hunters take their hobby very seriously, and few are concerned with AR's xx5.56/.223 ammo, or "tactical" gear. Bolt actions/shotguns and the appropriate ammo, along with hunting gear is what they sell, and these sales aren't affected by the dropping of AR type rifles.
 
   #33  

rumble phish

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guns are priced like made by hand gold items...

but are mostly machine made of steel and plastic... tell me again how it's a low margin sale item...?
You're referring to the manufacturer's cost. If you go back and look at the first line of my statement, you'll see I'm referring to the"retailer's" margins. There is very little profit in the actual firearm for them.
 
   #36  

pimpslayer

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Dick’s will remove hunting rifles from 125 stores

I haven't been in a Dick's for over a year.

I used to go buy 7 or 8 $50.00 gift cards during the year for family member's birthdays or Christmas presents.

They get cards from Academy Sports now and like it better.

4 of the guys hunt, 3 of them also golf, 4 of their kids hunt or play sports or both. 2 of the other kids haven't gotten old enough yet for Academy, but just a couple more years...
 
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   #37  

gobrian77

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It sounds like their issues with Under Armour (to which they allotted big money and store space) had more effect on their bottom line than anything gun or hunting related. Apparently sales of UA have been taking a shit lately.
 
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luckystrike

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So Dick's beat again

62 cents per share but flaccid sales growth

Seems like they're not worried about the trade war having raised their full year guidance

Should get a rise out of the stock today
 
   #39  

Hapo

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...I hope you make some $$$...enough to buy some nice guns....
 
   #40  

Qwik

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It sounds like their issues with Under Armour (to which they allotted big money and store space) had more effect on their bottom line than anything gun or hunting related. Apparently sales of UA have been taking a shit lately.
And now UA has a “Woke” campaign and started pushing LGBTQ clothing
 
   #41  
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luckystrike

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Unlike Gillette I've never bought UA so I'm not getting stiffed on this one

What exactly is LGBTQ clothing?

I mean beyond sweater vests, vibrams, chaps and topsiders for the gays and camo+combat boots for the lesbians, so where does UA differentiate? I think they're giving themselves the shaft with this strategy
 
   #45  
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luckystrike

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I don’t understand the need to pander to less than 1% of the population.
True

But I do think gays are big spenders in the high margin market. It's like the iPhone, which represents the smallest mobile phone market share but accounts for the largest global share of profits because their margins are the envy of that segment

Not lesbians, though. The live like junkyard dogs
 
   #46  

gobrian77

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I don’t understand the need to pander to less than 1% of the population.
UA must be doing something right- they managed to turn things around and now they're up nearly 26% YTD.
 
   #47  
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well UA is form fitting. Good for someone thats fit..otherwise it looks like 10lbs of shit in a 2lb sack like YSR
 
   #48  

gobrian77

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Nah- they make looser-fitting stuff as well as their 'compression' style of clothing- they know their market.:lol:
 
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