Dicks Sporting Goods 3Q14 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Weak comps because of golf and hunting

“Our consolidated same-store sales increased 1.1% at the lower end of our guidance of between 1% and 3% due to the continued pressure in golf and hunting.”

Golf comps down 9%

“As we look at our golf business, Golf Galaxy comped down 8.9% and our Dick’s golf business was down a similar magnitude.”

The golf business will probably bottom here soon

“I think the manufacturers have done a very good job of getting their inventory cleaned out; the new product offerings are a little bit more focused than they have been in the past. The conversations we have had about the next iteration of products or product launches after what’s happening this fall and early spring. There is not people rushing to get product out there to drive sales.

I think they’re going to take — everybody’s talked about that the business needs to shrink in order to be more profitable and I think that’s what’s going to happen. So I think the manufacturers are much more disciplined, the retailers are much more disciplined and I think the golf business is going to be an okay business. I don’t think it’s going to be a great business but it’s going to be an okay business and we’ll hit bottom here in the next quarter probably and we think that we’ll see increased profitability going into next year.”

Electronics category has been doing really well

“That whole electronics category around GoPro, the Fitbit, the wearables, we continue to be extremely enthusiastic about and have been performing quite well.'”