Dick’s sporting goods got the shaft today – circumcised to the tune of 23% after comp sales and EPS missed bigly. The company also slashed guidance for the rest of the year to $2.80 – $3.00 below previous guidance of $3.65 – $3.75 and Wall St. estimates of $3.62.
Dick’s Chopped
Warning…
And in a dire warning to the market, CEO Ed Stack said retail is in bad shape:
“There’s a lot of people right now, I think, in retail and in this industry in panic mode. There’s been a difficult environment. I think people, I’m not going to speculate what they’re thinking, but they seem to be in panic mode with how they’re pricing product, and we think it’s going to continue to be promotional and at times, irrational going forward.”
Stack also said their prices are too high, and as a result they’re going to beef up marketing efforts…
“we have conducted extensive consumer research, and the customers have told us they feel our prices are not competitive in today’s environment” in which everyone is slashing price to capture market share, and as a result the company is “intentionally joining this battle, and we will aggressively be promoting our business to drive market share to our stores and online.”
Too much inventory
Stack kept coming back to fact that other retailers are eating Dick’s lunch, adding “What’s going on in the marketplace right now is that it’s just very promotional, almost panicked in some cases, I think, especially in the hunting and fishing categories,” adding “There’s a lot of inventory in the pipeline, and people need to move it out, and it’s going to continue to be promotional until this inventory gets moved out of the pipeline”
I mean, Dick’s is a sporting goods store – and an increasingly fat America would rather play FIFA on an Xbox than risk blowing out their knees trying to shuffle our obese asses around on a soccer field. That said, perhaps we should consider this another canary choking in yet another coal mine.
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Hey all you Dicks
pricing —- pressure ——-
That’s means ——– De – Flation!
That means things must come down! Uh oh!
Not the environment the fed sought from years of bullshit artifice propping
Deflation baby, it never left
The retail and oil market rotation that was once cheered on resulted in suck.
Hardly surprising. DKS is way overpriced compared to everywhere else. Plus, their stores are super unappealing. Its simple for retail, evolve or die.
We must be close to the collapse. Zero dollar velocity and non existent retail sales. All some crafty European twat has to do is say the US is in the d-word and make it official.