Shares of sporting goods retailer DICK’S Sporting Goods, Inc. (DKS) have declined 24.4% over the past year and 11.2% year-to-date. However, it has gained 4.2% over the past three months to close the last trading session at $102.17.
Recently DKS announced the launch of DSG Ventures, a $50 million in-house fund to invest in innovative sports-related companies like itself.
Ed Stack, DKS’ Executive Chairman, said, “DSG Ventures will enable us to give back and help support entrepreneurs achieve their dreams through our connections, experience, and support. We know that DSG Ventures (and our partners) will bring innovative products, services, and experiences to athletes worldwide.”
However, the macroeconomic headwinds could mar DKS’ business growth. Amid the sky-high inflation and rising recession possibilities, consumers are hesitant to spend on discretionary items even before the holiday season.
Leo Feler, the chief economist at market researcher Numerator, said, “It's food, it's medical care, it's housing and shelter costs. It's essential services such as veterinary care, and child care. All of these things come first before consumers buy holiday gifts."
Furthermore, U.S. holiday sales are expected to rise at a slower pace this year. The National Retail Federation (NRF) forecast holiday sales, including e-commerce, to rise between 6% and 8% compared to a 13.5% jump last year and a 9.3% increase in 2020 when supply chain issues and pandemic-related uncertainties weighed on.
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