Dick's CEO: Golf Is In A "Structural Decline"

Tim Schooley of the Pittsburgh Business Times quotes Dick's Sporting Goods CEO Ed Stack about last month's mass layoff of PGA professionals and the company head says the retailer expects golf sales, once at 20%, is now at 15% and will drop to 10% going forward.

He also downplayed no longer having PGA pros in stores.

“We’ve got very good people who are there who can still help people,” said Stack when asked about how the lack of golf pros in the store could impact sales. “We don’t think it’s going to have any impact on the business.”

Along with the golf pro layoffs, Stack and his colleagues again emphasized the company’s shift away from golf merchandise in the Dick’s earnings call for the second quarter, reallocating the capital from golf to more profitable lines of business in athletic wear for women and children.

And there was this...

“I think golf from a participation standpoint and how it translates to retail is in a structural decline,” said Stack. “And we don’t see that changing.”

Thanks to reader Stuart for Roger Blitz's Financial Times story on the same Dick's conference call, reporting on the company taking a $20.4 million write down.

Severance costs will total £3.7m, while there is a $14.3m impairment charge on trademarks and store assets in the golf business and a £2.4m writedown of golf-related inventory.