Dick’s Sporting Goods 2Q16 Earnings Call Notes

Dick’s Sporting Goods (DKS) Edward Stack on Q2 2016 Results

Don’t expect to open all the locations that we have designation rights to

“So, as far as accelerating the store growth, we’ve got 30 – we’ve got designation rights on 31 stores. We don’t expect that we are going to open up all 31, we’ve already – there is a few that we know that we are not going to open up, because we couldn’t make the right deal and we’ve walked away from them. But I am not going to give you a lot of detail on that right now, so we are still kind of working through this, but it won’t be 31 stores that we open up. Our store growth next year will probably be a little bit higher than it was this year, because of the TSA stores, but we expect our growth to remain kind of in the same zone that it has been.”

Think that the tailwind of consolidation should last for a while

“– I would think the tailwind is going to last longer than that with these – because not only the fact that these competitors are gone, the fact that they will no longer be opening stores and including in some of our markets we think make – it will be positive also. So there is kind of a double-edged benefit if you will that they left some markets and then they are not going to be opening up in markets that improving on our market share. So we think this is going to last for a while.”

We’re going to go aggressively after market share

“We are not going to go on – I think you probably wouldn’t either if you were sitting in this side of the table, Sam. We are not going to go out and throw a number out there, but I can tell you, we are going to aggressively go after as much of the share as possible. We’ve gone down to the very granular level of where we think categories that we think we have a big opportunity to grab market share.”

Joseph Oliver

Comfortable with our inventory

“Total inventory increased 6.2% which is below our 7.9% sales growth for the quarter. We are very comfortable with our inventory levels and the quality of our merchandize as we transition into the fall selling season. As a reminder, our inventory still includes the winter pack-aways that we discussed with you as we exited 2015.”