This week, I've spoken with the Director of IR for Dick's Sporting Goods (DKS), Nate Gilch, and the CFO of Sportsman's Warehouse (SPWH), Kevan Talbot. Clients have received the notes from the discussions, and you can read them, too, with a trial of the Sporting Goods Monitor research product here on Harvest. Most importantly, these conversations delved deeply into the state of the sporting goods retail sector and its competitive pressures. Where Dick's sees an opportunity to steal market share from the bankrupt Sports Authority, Sportsman's Warehouse is focused on beating the Mom & Pop hunting and fishing retailers. Sportsman's Warehouse doesn't work to best Cabela's (CAB) with destination stores and giant aquariums. Instead, they're all about low prices. Meanwhile, Dick's is trying to elevate the in-store experience, especially with footwear. These two companies are thus pursuing different paths to success in the sporting goods industry. (I'll note, though, that Dick's Sporting Goods only competes directly against Sportsman's Warehouse with the company's Field & Stream brand.)
Initiation reports coming soon!