Dick's Sportin' Losses

Windini said:
@wvsig beat me to it.

Ed Stack, son of Dick Stack, was de-CEO'd last year.

True, the Co. is still around, and true, their stock price is higher. Further, $250M is likely chump change to these playahs.

But most stocks are higher now than they were in 2018, and as has been pointed out, lots of $timulu$ money was both spent (squandered, in some cases) on trinkets and luxuries by we the serf class; however, a LOT MORE of it got consumed by megacorporate America, which artificially bolstered their bottom lines and inflated their stock "value." I'm no economist, but I'd bet that that 35% increase in supply of US currency that appeared out of thin air in 2020 & 2021 was singularly responsible for the current "strength" of S&P, DJ, and Nasdaq listed companies.

We'll see what the future holds. But

applies down here at the reality level. If and when some kind of market correction or reckoning comes, and the supply chain problems haven't magically cleared up, and energy prices have ratcheted up the cost of transporting manufactured goods, and 90% of Dick's product line comes from overseas so can't be replaced with local goods... the soccer Mom's will buy from Amazon and Dad already has a home gym. And the rest of us will remember what those Dick's did when they woked up.

As far as "haven't we already talked about this?" goes: considering the amnesiac attention span and memory-hole agenda of our modern information dispersal systems, it's good to keep stories like this alive. We need real-world reminders that actions have consequences. And I no longer shy away from Schadenfreud when the fortunes of arrogant take a tumble.
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All sporting goods come from the same locations. Almost none of it is made in the US. It does not matter which retailer you are buying it at it all comes from the same place and will suffer from the same supply chain issues. I think that too often the gun community lives in an echo chamber. For every one of us there are how many who do not give a crap that Dick's sporting goods does not sell guns anymore. The vast majority of the US public does not view the entire world through the sights of a gun. Look at the numbers.

Academy sports vs Dicks Sporting Goods over the same period of time. One is doing better than the other in the same marketplace and is paying a dividend when the other is not. That tells you not only is the stock making money the actual selling of products is making them money so they are paying a dividend. I know we don't want to believe it but I think we over estimate our market clout. I do not believe that we move the needle in a big way. That does not mean we should not continue to buy from people who support us but to think that Dick's Sporting Goods is withering on the vine because pro-gun people don't shop there anymore simply does not seem to be the case when you look at the numbers.

All that said I am 100% with you. The amount of free money floated into the economy has driven consumer spending and a lot of that has ended up in the pockets of places like Dicks, Academy, Amazon, Walmart, Target etc.... Time will tell if it can be sustained not just by Dick's but the markets in general.
 
wvsig said:
but to think that Dick's Sporting Goods is withering on the vine because pro-gun people don't shop there anymore simply does not seem to be the case when you look at the numbers.
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I never made this claim. I'm well aware that the ship of fools sailed past me & mine long ago. And I already acknowledged a quarter-bil ain't nothin' to a playah.

That doesn't lessen the need for reminders about freemarket behavior vs. politically-injected choice reduction, nor negate the cathartic release of a good Nelson Muntz laugh from time to time. :D
 
And, as an afterthought:

It's worth pointing out that, despite one Prime Tenet of Wokeism being to "shop local," Dick's product line comes from sweatshops and forced labor factories in 3rd world countries with virtually zero health & human safety- and environmental protection regulation.

But many firearms and lots of ammo is manufactured right here in the good ol' USA. True, parts come from overseas, as do many complete guns and lots of ammo. But a much higher percentage of the firearms market is a lot "localer" than spandex and yoga mat foam.
 
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I'll go into Dick's to try on shoes & scope out their country of origin, then order online elsewhere. Otherwise, I won't even darken their door.
 
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Very few things are banned at my house. DSG and Nike are two of them. Dollar Shave Club is also on the list, but that’s not a huge loss.

There’s another list of places I refuse to shop again (like Trader Joe’s), but I don’t ask the wife to not shop there.
 
IrishCannon said:
Enough to make their stock price triple? It's all chinese made junk.

What has caused a surge in the value of this company on the exchange?
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Stock prices often reflect nothing more than investors being on Hopium. Check out a chart of GME and compare the stock price with the actual fundamentals (performance) of the business.
 
Timfoilhat said:
There's a trend towards companies striving for a high ESG score in an attempt to make their stock attractive to fund managers in the ESG sector.
It's my belief that most of this woke stuff that we see now from major companies is an attempt to appease the values of the newest generation of investors. Decisions are being made about taking losses now to guarantee long-term sustainability, and using that talking point is a successful tactic with buyers of ESG funds.
I think the guy running Dick's is just fine with his decision, thinking he's impacted the national discussion surrounding guns and gun rights. It's my sincere hope that his investors and board notice and throw him out over his mismanagement.
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Yes this ESG is straight out of the Paris Accord playbook, Biden nominated wife of Sen. Raskin to a Fed Job, she is on record about not lending to big oil and if you provide items to non green companies you can't get funding from banks. Just like in China with their ESG and tracking.
Coin shortage is manufactured crisis, Fed wants folks to use plastic payments, just part of their plan to eliminate paper money and coins.
 
Button Pusher said:
Yes this ESG is straight out of the Paris Accord playbook, Biden nominated wife of Sen. Raskin to a Fed Job, she is on record about not lending to big oil and if you provide items to non green companies you can't get funding from banks.
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I’m driving this thread FFFFFFFAR off topic but can’t help myself.

Imagine if the gasoline retailers got together (of course, they’d be accused of RICO violations). For the long July 4th weekend they declare Independence From Fossil Fuels and close every gas station in the country. 🤪
 
Leadchunker said:
I quit shopping there after they went woke.
They could have sold me shoes, boots, fishing rods, camping gear, ammo, guns, a safe, as well as misc impulse products.
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I know of two locations that don't sell fishing gear of any kind. So add that to the gun sales they're missing.

.
 
I read an article lately, most of their senior leadership team is female. Nothing inherently wrong with that, but the article discussed how there were certain demographics they wanted to target, and we ain't them. They've gone woke.
 
IrishCannon said:
Enough to make their stock price triple? It's all chinese made junk. It's all crap. It's not even quality equipment. - And the fitness gear they have? Overpriced tin foil. What has caused a surge in the value of this company on the exchange?
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This^^^^^

Why has the price went up? Their wokeness! Investors typically invest in growth or return prospects.... but these days many investors (Progs) will invest in a company that takes a political stand. Even those that run Institutional funds.. they will add that if they see technical analysis showing a demand for a stock.

SOONER or later ... a market shock will bring this back to all about Financial Return.... but with Covid, Inflation and Trading hijinks... (yes... I said it, Trading Hijinks) these idiots are enjoying a stock rise.... as is most every company as for now, avg disposable income is good, stimulus money, and consumers are still buying.

I know more than a few that have this stock shorted (and many others) for when the interest rates rise and the money runs out. Hard to bolster a stock price when Free Cash Flow to Firm suffers.
 
Chuckman said:
I read an article lately, most of their senior leadership team is female. Nothing inherently wrong with that, but the article discussed how there were certain demographics they wanted to target, and we ain't them. They've gone woke.
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So they are going to end being LuLu Lemon for the masses. Good to know.
 
Chuckman said:
I read an article lately, most of their senior leadership team is female. Nothing inherently wrong with that, but the article discussed how there were certain demographics they wanted to target, and we ain't them. They've gone woke.
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That's where they're headed... think they should change the name at least?
 
Jeppo said:
I’m driving this thread FFFFFFFAR off topic but can’t help myself.

Imagine if the gasoline retailers got together (of course, they’d be accused of RICO violations). For the long July 4th weekend they declare Independence From Fossil Fuels and close every gas station in the country. 🤪
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The first image that comes to mind is Elon Musk laughing his head off.


I think we're spending way too much time and energy debating over a company we don't agree with and don't support. They're dead to me. I don't care what they do. Just sayin'
 
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It cost them way more than that. When they took that stance I never went back to their store again except to go tell the manager he had lost a customer for life. DIck's, it's in the name.
 
I can't tell you the last time I stepped foot in one. Before they decided to alienate gun owners. It was always overpriced and the people didn't know anything about the products they sell.

I miss Durham Sporting Goods and the small sporting goods shops. I don't like Dick's, Academy, Bass Pro, etc.
 
Windini said:
Couldn't happen to a more deserving Dick's.

https://www.thetruthabo utguns.com...-gun-sales-cost-shareholders-250m-in-revenue/
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I'm not a fan of Dick's sporting goods, nor Academy, where I worked for about 9 months just before the pandemic arrived. There are locally owned sporting goods stores in my community where I can buy anything the major retailers carry. Yes, they may be more expensive on occasion, but I've found the locally owned folks friendlier, more knowledgeable, and usually competitively priced.

The article cited may not be totally correct. Here is another point of view:

stocknews.com

DKS: Dicks vs. Academy Sports & Outdoors: Which Sporting Good Stock is a Better Investment? | StockNews.com

With the majority of the U.S. population being vaccinated with at least one dose, and the easing of restrictions, outdoor sports activities are gaining popularity. DICK'S Sporting Goods (DKS) and Academy Sports and Outdoors (ASO) are two companies that should benefit from these industry...
stocknews.com stocknews.com

and a quote from the article:
"According to The NPD Group, equipment sales at sports specialty retail grew by 23% in the first half of 2021, compared to the same period before the pandemic in 2019. This was mainly driven by a 17% gain in brick-and-mortar retail sales and a 31% rise in e-commerce sales. The industry is expected to grow in upcoming months, with significant progress on the vaccination front. Thus, sporting goods stocks DKS and ASO could generate substantial revenues in the near term.
ASO has gained 73.5% over the past six months, while DKS has returned 67.4% over this period. However, DKS’ 132.7% gain year-to-date compares with ASO’s 106.3% return. In terms of the past nine month’s performance, DKS is the clear winner with a 135.3% gain versus ASO’s 112.3%."

Regarding the sale of guns and ammo, if I recall correctly one of the managers at the Academy store where I worked said they made almost no money on guns and only a little more on ammo. These items are there to draw customers into the stores, and are used to sell other more profitable stock, such as hunting and shooting gear, clothing, fishing gear, and shoes and boots.

Whenever a customer buys a firearm, as sales people, we were coached to upsell accessories such as gun cases, holsters, cleaning supplies, etc...in order to maximize profits. firearms sales alone didn't do much for the store's bottom line.
 
They went woke.

Then they started catering to a corner of the market that could care less about them.

And they lost money.

Shocker.
 
charliesgrave said:
www.thetruthaboutguns.com

Troy Defense Statement on Dick's Canceling Black Friday Carbine Orders - The Truth About Guns

&#9664Previous Post Next Post▶ One-time gun seller Dick’s Sporting Goods is taking heat from customers who ordered and paid for Troy Defense carbines during their Black Friday sale. Now that Dick’s has decided that selling black rifles is a little too disturbing in a post-Newtown world...
www.thetruthaboutguns.com www.thetruthaboutguns.com

Nope.
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I got lucky with that one, my father picked one of those up for me for a Christmas gift RIGHT before they started pulling them and not following through with orders
 
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