Summary
Dick's has clearly stated the headwinds for a year. Last quarter they predicted flat to low single digit negative comps and that is what we got (-4%).
Dick's has recognized the problems and is rectifying the situation. (Investors would need to be concerned if the company was not doing anything in response, which is not the case).
The core business is incredibly strong, management is genuinely excited about the future, and store profitability keeps increasing.
Company Description
For those who may not know, Dick’s Sporting Goods (DKS) is a leading omni-channel sporting goods retailer offering high-quality sports equipment, apparel, footwear, and accessories. The company also owns and operates Golf Galaxy, Field & Stream, other specialty concept stores, and Dick's Team Sports HQ (their digital platform). The company recently reported its Q2 2018 earnings and I have identified the weaknesses in the business, what the company is doing to fix them, and the opportunity that lays ahead for investors.
