Dick’s ‘Dropped the Bomb’ on Investors, and It Could Hurt the Company
Dick’s Sporting Goods “dropped the bomb” on its investors in its recent earnings call, according to CNBC analyst Jim Cramer. Dick’s told investors it would have to invest in its online business to fend off companies such as Amazon. Capturing online shoppers will be expensive and could hurt the company’s overall margins, Cramer said.
“That means Dick’s needs to spend even more money building out its own omni-channel presence while also suffering from lower gross margins because competition from Amazon always puts pressure on your pricing,” the “Mad Money” host said.
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