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Dolce > Dick’s
As the old adage goes, "Nordstrom giveth and Dick's taketh away."
Shares of the former were higher
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Look at 2 year (stack) growth in some retail categories for C2Q21. That is, category sales C2Q21 growth over C2Q19.
New cars +24%, used cars +29%, furniture +28%, electronics -1%, clothing -5%, shoe +3%, sporting goods +54%, dept stores -4%, warehouse clubs +15%, nonstore +62%, food services and drinking +5%.
Sporting goods was one of the best categories and DKS is the best sporting goods retailer, for F2Q21 its 2 year stack comp was +86%. Hard to comp well over “best”, specifically over a +86% 2 year stack comp.
On the other hand, comping well in the worst categories like clothing, shoe, dept store, food srvc/drinking categories should be more doable. Screen for a name in those categories that is below pre-pandemic price and is a fundamentally solid company, and it is probably worth working on.
(The electronics number puzzles me, as BBY’s 2 year stack comp was +32%.)
https://www.census.gov/retail/index.html using non seasonally adjusted
WSM also beat substantially, maintained guidance. Another data point for the higher income consumer’s insousciance. For now, anyway.
I amended this article to include Dick’s midday reversal, which was amusing. Management told analysts the guidedown was purely precautionary and wasn’t based on any actual signs of slowing demand. As Bloomberg put it, “the company didn’t explain how it calculated the new forecast if it isn’t based on current trends.”
Come October, Baxter’s report will probably be one word….”Damn!”