Dick’s Sporting Goods (DKS) heads into earnings with strong momentum, driven by youth sports and experiential retail. LikeFolio&#x27;s Andy Swan highlights advantages over Academy Sports and Outdoors (ASO), along with tailwinds from Nike (NKE) returning to wholesale. They also examine whether growth and expansion can sustain the rally near highs. ======== Schwab Network ======== Empowering every investor and trader, every market day. Subscribe to the Market Minute newsletter - https://schwabnetwork.com/subscribe Download the iOS app - https://apps.apple.com/us/app/schwab-network/id1460719185 Download the Amazon Fire Tv App - https://www.amazon.com/TD-Ameritrade-Network/dp/B07KRD76C7 Watch on Sling - https://watch.sling.com/1/asset/191928615bd8d47686f94682aefaa007/watch Watch on Vizio - https://www.vizio.com/en/watchfreeplus-explore Watch on DistroTV - https://www.distro.tv/live/schwab-network/ Follow us on X – https://twitter.com/schwabnetwork Follow us on Facebook – https://www.facebook.com/schwabnetwork Follow us on LinkedIn - https://www.linkedin.com/company/schwab-network/ About Schwab Network - https://schwabnetwork.com/about

Ca$htag$: DKS Builds Earnings Momentum as NKE Returns to Wholesale

Schwab Network

# Full Transcript

**Podcast:** Schwab Network

## Participants

- **Nicole Pedalides** (Schwab Network)
- **Kevin Hanks** (Schwab Network)
- **Andy Swan** (Likefolio)

## Transcript

Welcome back to Fast Market right here on Schwab Network. I'm Nicole Pedalides alongside Kevin Hanks who's live at the CBOE. And it's time now for Cash Tax. We bring in Andy Swan, co-founder of Likefolio and we're taking a look at Dick's Sporting Goods ahead of the company's earnings due out tomorrow morning. We look at some of the trends in Dick's. The stock has been on an upswing lately and joining me Andy Swan to give us some of your trends that you're seeing.

Yeah, the trends that we're seeing for Dick's Sporting Goods look pretty good. The tailwinds that they have are pretty incredible. When you look at youth sports now is a $40 billion industry with baseball spending alone up 70% since 2019. Seems like parents can't get enough of youth sports. They can't spend enough. They'll do anything for their kid to have any perceived advantage. And sometimes that means that they're going to have a lot of youth sports.

It means a $450 or $600 bat from Dick's Sporting Goods. And Dick's is doing a really good job of capturing these parent wallets. When you look at the consumer demand levels for Dick's Sporting Goods versus peers, it's a one-way race. And Dick's is winning in a big way, outperforming academy sports, outperforming Hibbit sports in a really big way.

So when we look at this, we also see Nike move back to wholesale as a big beneficiary to Dick's. They're starting to sell back through those stores instead of being so focused on direct-to-consumer. So Dick's has a lot of tailwinds going for it, and they're executing really well against those.

The only question right now, I think, is valuation. The stock's near 52-week highs. It's a tough bar to get over for Dick's in this earnings call, but we think that they can do it. They have the tailwinds behind them to create what we think is a really good story. Andy, this company, with everything I read about, and full disclosure, I have a Dick's about a mile and a half from my house.

I spend a fair amount of time there. And this store and how they keep it evolving, right now you go up the center aisle at Dick's, and it's all World Cup. It is World Cup everywhere up that center aisle. Everything else isn't the same, but they have really moved that store towards focusing on World Cup, jerseys, everything that you want to know.

But they're really, in my opinion, this Foot Locker acquisition, remember, it was very unpopular when they did it. But you put Dick's management style into Foot Locker, and now maybe you've got a franchise that has a chance. And you look at all the other things that they do with kids' sports, like an app organizing kids' sports.

They're one company, it's Game Changer. Game Changer is the kids' sports. The house of sports is the experience, right, where you can ice skate or do all these other th...

Ca$htag$: DKS Builds Earnings Momentum as NKE Returns to Wholesale

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Ca$htag$: DKS Builds Earnings Momentum as NKE Returns to Wholesale

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.