DKS - DICK'S Margins Are Unsustainable: Air Pocket Ahead

Summary

• DICK'S Sporting Goods, Inc., along with its peers, has enjoyed an unsustainable surge in revenues and margins due to the pandemic and excessive federal stimulus.
• Demand was pulled forward, leaving consumers with less sporting goods needs.
• A likely recession will exacerbate the situation, resulting in a reversion to the mean or worse since most of their merchandise is discretionary.
• The insiders are selling and DICK’S stock remains valued well above the peers.

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