DICK’S Sporting Goods, Inc. (NYSE:DKS) Q3 2023 Earnings Call Transcript

Navdeep Gupta: Yes. Daniel, let me clarify. The two things are totally separate and distinct. The onetime action that is included in our GAAP outlook and the inventory write-down actually is associated with the Moosejaw brand. We have some tertiary SKUs in that business. That will not be part of the go-forward assortment as we look to bring the two brands together. And so, that’s what you’re seeing is the action around the Moosejaw business, not necessarily anything to do with the actions that we talked about in Q2. Overall, our inventory is really clean and we are really excited about the assortment that we have available for Q4. And if you look at the overall inventory, we were down 2% on top line growth of 3%. So, we continue to manage the overall inventory really well and excited for the holiday season.

Daniel Imbro: Great. And then maybe as a related follow-up, Lauren, maybe you’re not seeing any trade down today, and that’s maybe surprising, but encouraging. I’m curious how you’re thinking about buying inventory or how you’re telling your buyers today to handle that. Are you preparing for a further trade down? Are you building inventory in that part of the price spectrum? And maybe if not, if we see a trade down, could there be a mismatch between the inventory you built and where the consumer shakes out?

Lauren Hobart: Dan, it’s a great question. We make sure that we have inventory for every single shopper at every single price point. So while some of our products have become even more premium as we’ve got access to premium footwear and just hotter products in general we, at the same time, have made meaningful inroads with our DSG brand, which is an opening price point brand that has tremendous value and tremendous fashion and a great price point. So, I think we’re perfectly suited to match the consumer needs, and we’ve been very happy to see that the consumer isn’t shifting down, but we can flex and we’ll have what they need when they need it.

Operator: Thank you. At this time, I would like to turn things back over to you, Ms. Hobart, President and CEO, for any closing comments.

Lauren Hobart: Well, thank you very much. I hope everybody has a wonderful Thanksgiving. Thanks for your interest in DICK’S Sporting Goods, and we’ll see you in New Year. Thank you.

Operator: Thank you, Ms. Hobart. Ladies and gentlemen, at this time, that does conclude the Q3 2023 DICK’S Sporting Goods Earnings Conference Call. Thank you very much for joining us, and we wish you all a great day. Goodbye.