Uncertain Times for the Sports Goods Sector: a Look at Dick’s and Other Players
The former EVP focused on the importance of e-commerce in the sporting goods market and said he expected Dick’s to be well-placed to increase its online sales, disclosing the amount that the company invests into its web business annually. The ex-executive explained the significance of this and warned investors should be wary of sporting goods retailers that are just “bricks and mortar”.
Threats and challenges were also discussed at length, including the impact of Dick’s anti-gun stance, and its conflicts with vendors such as Nike, Adidas, Yeti, and Under Armour as these companies seek to go further down the direct-to-consumer route.
The Interview also asked the question on every investor’s mind: what will Dick’s do about its hunting brand Field & Stream? The former COO believes it will be extremely hard for the firm to make this brand work without handguns and modern sporting rifles, and that the company would be wise to ditch Field and Stream – but whether it will is another question.
The former executive then gave his views on Dick’s competitors including big regional rival Academy, and how Academy’s current debt problems present an advantage for Dick’s. Other major competitors analysed in the Interview include Big 5, Hibbett, Modell’s, and REI.
The Interview disclosed Dick’s financial position and the effects of a potential recession on the company. The former COO explained why he thinks Dick’s is well-poised if the US enters into a recession in the next 18 to 24 months, and why the company needs to focus on its customer conversion rates, recession or no recession.
To access all the human insights from Third Bridge’s Dick’s Sporting Goods – Potential Market Winners & Losers Interview, click below to view the full transcript.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
For any enquiries, please contact email@example.com