Friday, September 27, 2013
Dick's $10 Billion Plan Requires Patience
Anyone who follows the sporting goods sector or retail in general probably identifies Dick's Sporting Goods (NYSE: DKS ) as a premier operator in the industry. The company has long generated strong margins and profits while expanding its retail base to grab market share from struggling competitors such as Sports Authority. Unfortunately as Dick's store base recently surged beyond 500 locations, the rate of growth has considerably stalled, leaving investors wondering if the growth years are in the rear view mirror.
During the recent analyst day, the management team laid out a 5-year plan of growing the revenue base to $10.0 billion from the $5.8 billion generated in 2012 and expanding margins via several initiatives. One of the major goals is to develop a store concept beyond the maturing Dick's brand.
Read the full article here.
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