Dick's Sporting Goods: Post Mortem on Earnings

Last week, Dick's Sporting Goods (DKS) delivered disappointing results and guidance. Since I have been well connected to analysis on DKS since the company went public, I thought that I would pass on some thoughts about the earnings report and conference call. Management has been known to be conservative with its guidance but this time the guide down was too much to ignore.  

The stock was sold down sharply and traded down to a 52 week low. I have owned DKS since the company went public and have no plans to sell stock. In fact, I might add on weakness. The company has had only two off quarters – 2q06 and the one just reported – since going public in October 2002. Both times the earnings miss was quite small.