Dick's Sporting Goods (NYSE: DKS) keeps distancing itself from the firearms market, which suits Sportsman's Warehouse (NASDAQ: SPWH) just fine. The smaller sporting goods retailer is buying eight of Dick's Field & Stream stores, outlets that focus in good part on the hunting market, as it seeks to return to a program of expansion.
The timing just might be right, too. Although the firearms industry has been in a slump since late 2016, there are numerous indications the bottom has been reached, and it is starting to rise again. Sportsman's Warehouse could be perfectly positioning itself to capitalize on the recovery.
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