DICK’S SPORTING GOODS ANNOUNCES THE OPENING OF 10 STORES ACROSS 8 STATES
Dick’s Sporting Good, Inc. (DKS) announced it would be opening 10 stores, including 8 flagship stores and 2 Field & Stream outlets by mid-September, as part of the company’s plan to open 43 new stores by the end of the year. The company reported Q2 2017 revenue growth of 9.6% (to $2.157 billion), attributing it to the expansion of its store network (13 stores in Q2), as consolidated same store sales rose just .1 percent YOY. Company CEO Edward Stack believes that retail disruption provides DKS with long-term opportunities and that the company needs to invest aggressively, both in brick & mortar and its marketing efforts, to protect its market share.
Howie Long-Short: DKS recently launched a private label compression and training clothing line named Second Skin, to compete with Under Armour (UAA). It’s certainly worth a shot. The odds of developing a successful private label in-house must be better than banking on a vendor that wants to go DTC (i.e. NKE) to drive future growth.
Fan Marino: Dick’s is doing athlete meet and greets at each of their grand openings. If you happen to be in Medford, MA Sept. 15-17th, Celtics 1st round pick Jayson Taum will be in attendance; while Kings star Buddy Hield will be at the Roseville, California opening that same weekend.