Well.... it hurt same-store sales for the quarter, but hasn't yet impacted earnings.

Dick’s Earnings Show Little Harm From Stance on Guns

Dick’s Sporting Goods Inc. DKS 25.82% posted higher quarterly profit and sales, allaying investor concerns about the sport-goods chain’s controversial decision to tighten gun policies.

The retailer said Wednesday that its hunting business suffered during its fiscal first quarter, but it reported better demand for other items, which helped profit margins.

Dick’s shares were ahead 27% at $38.60 in midday trading.

Chief Executive Edward Stack noted in March that the new gun restrictions had hurt traffic and sales, as customers unhappy with the moves said they would shop elsewhere. Same-store sales for the quarter, which ended May 5, declined 2.5% from a year earlier; analysts polled by Consensus Metrix were expecting a 1.4% decline.

Dick’s finance chief Lee Belitsky said in reference to hunting sales that the chain’s gun policy prompted “an accelerated decline in an already challenged category.”

Profit rose 3.2% from the year-earlier quarter to $60.1 million, or 59 cents a share, topping Wall Street expectations and leading the company to raise its full-year outlook. Dick’s said it relied on fewer promotions to move merchandise and was able to reduce its inventories.

Total sales rose 4.6% to $1.91 billion, helped by the addition of new stores and converted outlets of Sports Authority, which filed for bankruptcy. Dick’s operates more than 800 stores, including Golf Galaxy and Field & Stream locations.

In February, Mr. Stack announced his company was raising the minimum firearms purchase age to 21 and would no longer sell assault-style rifles at its Field & Stream stores. They weren’t sold at flagship Dick’s locations. The retailer also banned high-capacity magazines and so-called bump stocks from all of its stores.

In an interview in April, the retailer’s longtime CEO said he believed the private sector can take a role in effecting change in the U.S. gun-control debate. He has been lobbying members of Congress and met with Everytown for Gun Safety, a gun-control advocacy group.

Earlier this month, Dick’s was expelled from membership in the National Shooting Sports Foundation due to “conduct detrimental to the best interests” of the firearms trade association.

Mr. Stack said Wednesday that the organization’s primary activity is running “The Shot Show,” a trade show for weapons and firearms. “We don’t go to the Shot Show now. It’s really not that big of a deal,” Mr. Stack said.

He added that Dick’s doesn’t “have the best relationship with the firearms manufacturers right now” and expects its hunt and firearms category to be challenged for the rest of the year.

On Tuesday, analysts at Canaccord Genuity lowered their sales and earnings estimates for Dick’s, citing weakness in the hunting category as well as slowing demand for athletic apparel and certain sports categories. Fall is typically the busiest season for the hunting business.

https://www.wsj.com/articles/d...-on-sales-1527683401

I wonder if sales might be artificially buoyed by those wanting to show support for Dick's firearm policies and buying their yoga mats and such from there. That is, they would've been markedly worse without a post-policy bump that likely isn't sustainable.

I kinda wonder whether Dick's was really selling all that many guns before. It's not like they were ever known as a price or support leader in the field.

chellim, do something for me- point me to any news item you've posted here recently that's not bad news. Anything at all. Even the slightest bit of good news. Point me to that, would you?

Every retail store has been doing better in this economy.

That's a misleading story. Dicks has laid off a significant portion of its corporate and retail workforce over the past 9 months. (3 layoffs that I am aware of). This will temporarily improve profits. Let's see how they finish 2018.

quote:

Originally posted by parabellum:
chellim, do something for me- point me to any news item you've posted here recently that's not bad news. Anything at all. Even the slightest bit of good news. Point me to that, would you?

quote:

Once upon a time... the masses were encouraged to learn a trade.
Now... the masses are encouraged to go to college.
Perhaps the day will come when that will flip again.

Good news!

quote:

But if McCain were to leave after May 30, his appointed successor would most likely get a free ride until 2020. Given the way the current political winds are blowing, both nationally and in Arizona, the two parties’ electoral preferences are clear even if neither will say them aloud for obvious reasons: Republicans would rather defend the seat in 2020; Democrats would prefer to expand the battleground map this fall.

Good news!

quote:

Ripley,
Thanks. Mark Dice nailed it.

Good news!

quote:

Germantown is a nice area. We went to the Memphis Redbirds game Saturday night and then hung out on Beal Street for a while.

Good news!

quote:

Nice grill!

Good news!

Thank you. Somehow, those things seemed to get lost in your other posts.

quote:

Originally posted by Graniteguy:
That's a misleading story. Dicks has laid off a significant portion of its corporate and retail workforce over the past 9 months. (3 layoffs that I am aware of). This will temporarily improve profits. Let's see how they finish 2018.

I agree. I think the reaction to this earnings report was overdone.... It's fluff.
At the close of trading today I took a substantial short position in DKS.

quote:

Originally posted by chellim1:

quote:

Originally posted by Graniteguy:
That's a misleading story. Dicks has laid off a significant portion of its corporate and retail workforce over the past 9 months. (3 layoffs that I am aware of). This will temporarily improve profits. Let's see how they finish 2018.

I agree. I think the reaction to this earnings report was overdone.... It's fluff.
At the close of trading today I took a substantial short position in DKS.

You neglected to mention any of this in your post which contains the story,

Sometimes I post articles or commentary without comment of my own, but in this case I did comment:

quote:

Well.... it hurt same-store sales for the quarter, but hasn't yet impacted earnings.

It will impact earnings, it just wasn't reflected in this earnings report released today.... unless you look at same-store sales, which declined 2.5% from a year earlier; a larger decline than analysts expectations.

One more aspect to the saga:

http://markets.businessinsider...ns-2018-5-1025889248

For anyone following this... I just covered my short.
I don't normally post my trading activity (here or anywhere), but I felt compelled to let my friends here know that I was putting my own money where my mouth was. I felt that the reaction (+25%) to the earnings report was clearly overdone by the mainstream and "financial" media.
But I don't normally take short positions and didn't really want to hold it over the weekend.
I certainly can't complain about the results for a two-day trade.

I've dug through company financials for many, many years doing what I do, so for those who claim Dick's is simply cooking the books, you're likely right on target.

Let's take a walk down "Conversation Street" shall we. We all recognize that brick and mortar stores in general are hurting big time because of the explosion of eCommerce. Borders, Blockbuster, Sports Authority and many others didn't adapt quickly enough to a changing marketplace and were culled from it. Dick's month over month revenue figures suck, to put it politely. They've whittled away at costs through personnel cuts and other expenses, and their revenues are still on a downward slide overall. Dick's alienating 'any' potential customer base at this point is beyond insane. IMO Chellim's short position on the stock is right on target as I truly believe DKS' days are numbered.

There's a Dicks attached to a mall here in town and you could fire a cannon through it almost any day, and not hit a sole.

Seriously though, even the one right next to Costco by my work is EMPTY almost all the time. I used to breeze in there looking for new "KOPEN" stuff, as my wife loved that brand and the cut/fit of their products.

quote:

IMO Chellim's short position on the stock is right on target as I truly believe DKS' days are numbered.

Closed. +7% and out.

Dick's Sporting Goods' shares slide as retailer misses second-quarter sales forecasts

August 29, 2018

Dicks Sporting Goods shares slide as sales miss expectations and company blames Under Armour
Sales at Dick's Sporting Goods stores open for at least 12 months also tumbled by a bigger-than-expected 4 percent during the quarter ended Aug. 4, which was partly blamed on Under Armour.

Dick's Sporting Goods shares slid as much as 12 percent in premarket trading after reporting less-than-expected sales during the second quarter.
Comparable-store sales also unexpectedly dropped 4 percent.
The disappointing sales results overshadowed the company's improved earnings outlook for the year.

Shares of Dick's Sporting Goods DKS plunged by as much as 12 percent in premarket trading Wednesday after the retailer said its sales during the second quarter were less than Wall Street expected.

Comparable store sales also tumbled 4 percent during the quarter ended Aug. 4, more than expected, which was partly blamed on changes in Under Armour's UAA strategy.

"As expected, sales were impacted by the strategic decisions we made regarding the slow growth, low margin hunt and electronics businesses, which accounted for nearly half of our comp decline," CEO Ed Stack said in a statement. "In addition, we experienced continued significant declines in Under Armour sales as a result of their decision to expand distribution."

Stack said he was confident sales would turn around as those challenges lessen.

Here's what Dick's reported for the second quarter versus what Wall Street analysts polled by Thomson Reuters expected:

Adjusted earnings per share: $1.20 vs. $1.06 expected
Revenue: $2.18 billion vs. $2.24 billion expected

Slow sales of Under Armor. Just as we all predicted!

I was at a Dick's this past Saturday, maybe 5 people in store 0 at gun counter.

4% drop in same store sales is freaking huge in retail. The retailers I have experience with security would be wearing a groove in the floor walking people and their boxes of knick knacks out the door on a day numbers like that hit.

Way to go Dicks!! Keep it up.