Image Source: Company's website
Dick’s Sporting Goods (DKS) hasn’t been helped much by the improving retail environment and the rebound seen in the past few quarters. The stock is still trading almost 50% below the top of $63 reached at the end of 2016 and is one of the few retail companies that experienced a deceleration in the past quarters, while most of the players reported a significant improvement. Same-store sales turned to a negative 2%, although the difficult comparison with Q4 2016 (5% comps growth) can explain part of the weakness. In any case, I continue to see the numerous and clear sources of margin pressure as the main problems for the business, and the stock still looks cheap for a reason.
