Dick’s earnings weren’t as bad as expected, even thought their gun and hunting business is hurting. My guess is that Dick’s will leave that line of business as sales in that area continues to flounder. I’d note that earnings beat expectations, which were low. Their earnings are the same as they were in Q1 of 2016 on about the same revenue. I’m wondering how much of their surprise has to do with online sales, which grew quickly, and may have prevented a loss. Same store sales being down means our boycott is having an effect, and Dick’s admits that’s a result of a decline in sales of our items.
I’m not sure this is the story their CEO and the media are making it out to be. Certainly I’m not going to spin this as good for us: Dick’s doesn’t have a history of beating Q1 expectations. It’s interesting that analysts lowballed them by 9 cents a share over the previous year. Q1 estimates for Dick’s have, generally speaking, been pretty spot on. Anyone have any idea how these earnings estimates get decided? How many people are involved? How much influence would someone like Bloomberg and his associates have on the process? I’m not ready to put my tin foil hat on yet, but I’m curious. Because setting up low expectations for Dick’s on purpose to achieve a PR coup would be something I’d do if I were Bloomberg and could pull it off. Just sayin’.
If same store sales keeps dropping, that will hurt Dick’s in the long run. So get the word out.