Speaking at the Goldman Sachs Global Retailing Conference, management from Dicks Sporting Goods provided a bit of additional color into its business and also some insight into its prospects for the future as they drive their ultimate goal for 800 stores. The retailer suggested that the outdoor, or lodge, business and golf business will continue to be challenged, but the footwear business is apparently healthy.
Company Chairman and CEO Ed Stack said he expects golf to be difficult for the balance of the year and into 2009, but also sees some opportunities ahead as independent golf retailers “are closing at a pretty rapid rate.” He sees challenges from a lack of exciting new technologies in the market, but also sees margin opportunities from the private brand end of the business.
Mr. Stack said Texas continues to be a challenge, due in large part to an aggressive competitor in Academy, but he also indicated that their positive performance in Florida has offset the Texas issues. He said the main competitor in Florida is Sports Authority. In California, the first Chicks SG store will be converted to a Dicks SG store in October and the balance of the stores will be converted by the third quarter next year.
