iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,417 Blog Posts

DICKS CRUSHED ON EARNINGS MISS

It has always been a desire of mine to write that title. It was on my bucket list. I’ve always felt DKS was too expensive. I’d leave that store, $500 less rich, mumbling to myself “why hasn’t the deflationary vortex stricken them dead?”

Alas, the vortex will get them all, one by one. If you have cash, you are King. Dick’s sporting goods has been chopped by a solid 15% guillotine in pre-market trading.

Reports Q3 (Oct) earnings of $0.45 per share, $0.01 worse than the Capital IQ Consensus of $0.46 vs. $0.45-0.48 guidance; revenues rose 7.6% year/year to $1.64 bln vs the $1.66 bln Capital IQ Consensus.

Consolidated same store sales increased 0.4% vs. +1 to 3% guidance.

Same store sales for DICK’S Sporting Goods increased 0.7%, while Golf Galaxy decreased 2.9%. Third quarter 2014 consolidated same store sales increased 1.1%.
Co issues downside guidance for Q4, sees EPS of $1.10-1.25 vs. $1.42 Capital IQ Consensus; comps -2% to +1% vs. ests above +1%.

Lowers FY16 EPS to $2.85-3.00 from $3.13-3.21; lowers comps to +0-1% from +1-3%.

“Our positive same store sales for the quarter reflected a strong back-to-school selling season tempered by slowing trends later in the quarter. Strength in athletic footwear, accessories and athletic apparel was moderated by the impact of record warm weather in more seasonal categories.”

“As we look to the fourth quarter, we anticipate a more promotional environment.”

These numbers just fucking suck. I’m actually putting together a buy list of my favorite ravaged retail names. I’m basing my analysis on current valuations v historical norms. The ones with the greatest variance are of elevated interest to me. Case in point: GPRO.

I know the fucker is acting like coal; but at these levels, you have to be interested–trading 1.6x sales down from 8x. This is a staggering drop in the way Wall Street perceives the company.

I am optimistic for certain retailers, after seeing shares drop by a third over the past 3 months. Let’s see if the market can mount a rally today and build upon yesterday’s momo.

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14 comments

  1. ecchymosis

    How long have you had that picture waiting to accompany that headline?

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  2. Dr. Fly

    just found it now

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  3. matt_bear

    Their prices are so high I’m surprised anyone shops there.

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    • duckkell

      all very nice stuff..newest and nicest..but retail is for suckers!!

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      • matt_bear

        plain basic t-shirt with an iron transferred nike swoosh that comes off in the wash after a few times (cuz they stopped doing embroidery) for $45. yeah. newest and nicest. lol

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      • og

        But this is how Nike and UA do business.

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  4. vandamme

    Gpro is a long here

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  5. boyaj

    Good sir, could you explain this deflationary vortex hitting retailers? It makes sense in the context of AMZN due to them undercutting prices, but how does this apply to AAPL? Thanks Dr.

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  6. green machine

    That photo is a thing of beauty.

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  7. duckkell

    as Tyson always says: “everyone has a plan til they get punched in the speedbag”

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  8. din

    GPRO is a road apple. Sorry good Sir.

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  9. sia

    KORS

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  10. ConManipulation

    GOOD! FOOK those treasonous ash-holes, and with no Vaseline, either!

    Pull AR-15s off the shelf, huh? Betrayers of the 2nd Amendment should all wither and die!!

    What a DICK move, and I hope it haunts you every single day until your stock price goes to ZERO, and doesn’t stop there!!

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  11. blahblahblah

    when they opened a new DKS nearby I sashayed over. a smiling salesman approached and I screamed at him ” THIS IS A BIG AZZ DICKS “… he laughed.

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