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DICK'S Sporting Goods Q2 Earnings: Push Through The Pain


  • DICK'S Sporting Goods stock plummeted more than 24% after missing revenue and earnings guidance for Q2 and revising earnings guidance down for the fiscal year.
  • Despite the drop, the company's revenue increased by 3.6% YoY and comparable store sales improved by 1.8%.
  • DKS stock is trading at an attractive valuation, with a forward P/E multiple of 9.8, and other pricing metrics looking attractive.
  • DICK'S also has attractive long-term growth prospects, and it is actively buying back stock.
  • Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »

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DICK'S Sporting Goods Q2 earnings results

Aug. 22 proved to be a very painful day for shareholders of sporting goods retailer DICK'S Sporting Goods (NYSE:DKS). After announcing financial results covering the second quarter

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This article was written by

Daniel Jones profile picture

Daniel is an avid and active professional investor.

He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.

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Comments (4)

trusthouse profile picture
The company is still hugely overvalued compared to peers.

3.6% YoY on top line is not good as prices have risen sharply in the meantime. I'd like to know how many shoes they sold YoY, it would be more relevant, and it's probably negative. Others might be even worse, but it doesn't make DKS good.

This doesn't look good going forward. The change in guidance is just a beginning. Buying now would be a big mistake IMO.

Covid era sales will never come back, and post-covid sales are biased because of inflation. At some point, I expect a dividend cut as margins are suffering. Something like a 50% drop looks reasonable before one accumulates again.

The question for now is rather what are the support levels to cover one's short.
I like DKS and at $ 110 I'm a buyer.

After reading the above the CFO is below standard if they are only taking inventory annually. He has no idea when the inventory went missing and possibly waited an entire year to take corrective action.

Where I used to work, as a Forutune 500 CFO, I would have been fired if I had handled it in the same manner.
Daniel Jones profile picture
@Clark158f1 I agree. They should be doing it at least quarterly in my opinion, though I have never been in that role, so I don't know best practices.
@Daniel Jones

Or he could cycle count....either way you don't wait a year to find you have a problem.
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