3. DICK’S Sporting Goods, Inc. (NYSE:DKS)
Number of Hedge Fund Holders: 43
DICK’S Sporting Goods, Inc. (NYSE:DKS) is a sporting goods retailer that operates primarily in the United States. The company’s offerings include hardlines, such as sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear products. Additionally, DICK’S Sporting Goods, Inc. (NYSE:DKS) provides a wide selection of apparel, footwear, and accessories. It is one of the best sporting goods stocks to invest in.
On May 23, DICK’S Sporting Goods, Inc. (NYSE:DKS) reported a Q1 non-GAAP EPS of $3.40 and a revenue of $2.84 billion, outperforming Wall Street estimates by $0.19 and $40 million, respectively. In the first quarter, the company achieved a 3.4% increase in comparable store sales, fueled by a rise of 2.7% in transactions and an increase in the average ticket value.
According to Insider Monkey’s first quarter database, 43 hedge funds were long DICK’S Sporting Goods, Inc. (NYSE:DKS), compared to 40 funds in the last quarter. Stephen Mandel’s Lone Pine Capital is the biggest stakeholder of the company, with 4.5 million shares worth $647.8 million.
Here is what Baron Fund has to say about DICK’S Sporting Goods, Inc. (NYSE:DKS) in its Q1 2022 investor letter:
“Dick’s Sporting Goods, Inc. was the first stock Michael recommended to us shortly after he joined Baron Capital in 2003. Dick’s share price has since increased about nine-fold. Unfortunately, we sold our investment in Dick’s about six years ago and, although it was a successful investment, we did not realize the full benefit of Michael’s recommendation. We sold too soon because I was concerned that competition from internet retailers would have a permanent negative impact on Dick’s stores’ profitability. I was wrong. Dick’s stock price so far has about doubled after we sold…and its prospects have brightened!
We sold even though we considered Ed Stack, Dick’s Chairman and CEO, a terrific retailer, a great entrepreneur and a special person. Ed had built Dick’s from three bait and tackle stores his dad started into a uniquely positioned, nationwide chain of 730 sporting goods stores. In fact, Dick’s is now the largest nationwide sporting goods chain. Ed had purchased the three bait and tackle stores, the foundation of Dick’s business, from his dad. Ed’s mother loaned him the money to buy his dad’s stores! I’m not exactly sure what that signifies. But it may have something to do with Carl Icahn’s proclamation that “everything I have is for sale except my children…and maybe my wife.”
Ed and his newly appointed CEO Lauren Hobart visited us last month. Ed asked for the meeting to introduce us to Lauren, as well as to discuss the prospects for Dick’s new, large format stores with attached outdoor, student athletic fields. Lauren then described how well its new format stores were doing in two smaller communities. We also spoke about the successes of Dick’s omni-channel retailing efforts and how desirable Dick’s stores have become to shopping centers trying to lure shoppers to return to their malls.”
