Live from the Dick's 3Q Call
- New shared service format (self-help) outpaced footwear chain comp results by 500bps+
- Texas stores have outperformed company average by a ‘wide margin’
- See opportunity for further margin expansion in intermediate-term as they shift towards greater mix of footwear & apparel as well as private label and brand business
Key driver of footwear and apparel business is Under Armour and Nike - seeing great results from the Nike Fieldhouse concepts in stores. (Hedgeye: They're kind of obligated to say this).
- Not seeing significant price inflation yet
- Buying for Q3 and Q4 of next year and not seeing 'any pressure that makes us uncomfortable.'
- (Hedgeye's Note: This is troubling. There will be a margin hit at DKS. They should plan for it).