Dick’s Sporting Goods (NYSE:DKS) is about to release earnings. Ponder this Bear Case Scenario:
Sporting Goods Business is mature and competition is fierce. Growth only comes at the rate of GDP growth which is dead slow.
Will children continue their participation rate in sports and thereby drive sales for equipment and uniforms.
Competition from all sides. Traditional names are still in the field. Specialty stores and manufacturers are setting up new stores with compelling merchandise mixes. Dick’s is tired in the market place.
George Gutowski writes from a caveat emptor perspective.