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Couldn’t Have Happened to a Bigger Bunch of …

Dicks Sporting Goods says it may have to close its Field and Stream stores because of poor sales. Still, they say they don’t regret their choices and would make the same choices again if they were given a do-over. It’s not many companies that will deliberately and knowingly piss away significant business while telling investors they are happy to have cost them money. I notice they are rated a sell currently.

Dick’s Sporting Goods Inc holds several negative signals and is within a wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our recommendation for this stock since last evaluation from a Hold/Accumulate to a Sell Candidate.

Sounds about right to me!

11 Responses to “Couldn’t Have Happened to a Bigger Bunch of …”

  1. Brad says:

    How to explain the self-destructive behavior of Dicks?

    There used to be a pretty hard division between rich capitalists and anti-capitalist academics.

    I suspect that the children of those rich capitalists, after a heavy dose of indoctrination during their College years, are forming a new category of rich anti-capitalists, and many of them are now entrenched in positions of power and influence including business management.

    • Patrick Henry, the 2nd says:

      I think its not just rich capitalists, but a lot of people due to government schools.

      I believe they do it for a couple of reasons:

      1. They actually don’t think it will hurt the business
      2. Even if it did, it’ll be for a short time
      3. Even if not, its still worth it
      4. And they’ll get lots of accolades from their peers, which is priceless.

      • The_Jack says:

        Sarah Hoyt has a theory called “Roll Left and Die”.
        Now, it doesn’t apply here given some of the priors involved.

        First Dicks isn’t in a field dominated by one ideology, and second I don’t /think/ they were in real trouble.

        “”
        When a magazine or a newspaper or any news or entertainment media was in real trouble, they went hard, hard left, then died.

        It took me a little while to realize this was a sane strategy. In a field completely controlled by the left, when you knew that your job was in peril be it through missmanagement or whatever, your last hope was to go incredibly hard left, so you could blame the failure on ideology. And instead of not being able to find a job, you found yourself lionized by all the “right” (left) “thinking people.” New jobs were assured.
        “”

        But the concept is compelling.

        In short it’s a “Well if we’re going down let’s remove the restraints, say what we /really/ think, and go down for a /reason/.”

        So maybe Dicks management didn’t /start out/ with this concept in mind, but once trouble started, there could have been a logic like the above to compel them to /continue/ down this path.

        Sure the Rank and File won’t be covered by this strategy, but the managers who drove Dicks into the ground (if we presume the company takes even more of a hit) will be able to jump ship and leverage their “courage”>

        https://accordingtohoyt.com/2016/11/19/rolling-in-the-deep/

        • Chris says:

          It’s the James Taggart strategy. You can get paid by acquiring “pull” rather then cash ROI. The left is pretty good about giving their wounded culture warriors a soft landing in academia, a think tank, a government agency, etc.

  2. Flight-ER-Doc says:

    The shareholders should file an SEC suit for deliberate malfeasance…they’ve ruined the brand name.

    • Richard says:

      He has basically admitted guilt so I would think a competent lawyer could win this one.

    • HSR47 says:

      This.

      They’ve basically admitted that they KNOW that they fucked up, and they’ve continued to KNOWINGLY double-down on the same choices, which they KNEW would have a negative impact on the business.

      For any shareholders looking to sue, those statements should be ironclad evidence of the DSG managements’ collective disregard of their fiduciary duty.

  3. Fred says:

    The strange thing is the stock just doesn’t care. DKS is actually up about 15% year-over-year.

    • Bill C. says:

      Accounting tricks, stock buybacks, and downsizing can make stagnant to shrinking businesses perk up on paper. Many have been doing it for years.

  4. RAH says:

    My first reaction is good riddance My second is that it is a shame to lose a big box store that normalized guns to this shunning. Still the lesson has to be hard Screw with your customers and lose.

  5. HSR47 says:

    All things considered, I’m curious how much of the apparent downturn in sales for DSG is actually a product of people actively avoiding DSG due to their political activism, and how much is just an indication of the overall health of the industry.

    As someone in the industry, I can state definitively that the market has been in the process of a MASSIVE correction since November of 2016. This past summer was the WORST summer for the industry that I have ever seen.

    In the last year or so, I’ve seen numerous shops in my area significantly cut back their hours, and in some cases they’ve closed altogether.

    Things seem to be picking up over the last few weeks, and hopefully it is an indication of greater things to come, but it’s been an extremely hard few years for most of the industry, and just about everyone is hurting.

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