MOSS ADAMS CAPITAL: Apparel and foowear market monitor highlights notable deals, stock prices and results.
Details on Industry Insight.
Dick's Sporting Goods said today it will close two Chick's stores and covert the remaining 12 to Dick's locations in the second quarter.
The company made the announcement in its 2008 fourth quarter and full year earnings press release.
Chick's is an important industry customer that carries a wide selection of junior's and young men's surf and skate apparel in a prominent section at the front of stores.
It appears Dick's is not as committed to carrying as wide a range of brands, judging by the 50 percent off sale on new spring goods from brands such as Ezekiel, DC, Fox, Element, Matix and Honolua that I recently saw at the Dick's store in El Segundo.
With all Chick's stores being converted to the Dick's format in the spring, it could mean fewer industry orders going forward.
In the fourth quarter, Dick's total company sales fell 0.4 percent to $1.2 billion, while same-store sales fell 8.6 percent. Same-store sales results did not include the recently acquired Chick's.
Dick's recorded a $104.4 million loss for the quarter, including impairment charges related to acquisitions. In the same period last year, Dick's posted a $73 million profit.