Dick's Sporting Goods Rolls Out New Holiday Ad, While Retailer's Q3 Profit Slumps

Dick's Sporting Goods ahead of holiday season has "released a minute-long ad, directed by Derek Cianfrance, about a special gift for a local family man who is also a kids' soccer coach," and the spot is "another winsome piece" from ad firm Anomaly, N.Y., according to Gabriel Beltrone of ADWEEK. The spot is "focused on a love of the game that fuels everyman athletics (as opposed to the pro-level endorsements and flashy gimmicks common in the category)." This time, "that small-town mythology comes with an especially touching twist ending." The result is "shamelessly manipulative in the best possible way." It is "deliberately unpretentious and ultimately incredibly sweet" and serves as an "appropriate follow-up to Dick's father-daughter basketball spot from last year, even if it isn't quite as heart-melting" (ADWEEK.com, 11/16).

HOT MEANS COLD: The WALL STREET JOURNAL's Sara Germano noted Dick's yesterday "slashed its financial forecast after profit slumped 4.1% in the third quarter." Dick's Chair & CEO Ed Stack said that the company is now facing a "product glut and plans to cancel or return some orders from vendors as the retailer heads into the holiday season." Stack added that he "expects the season to be more promotional than usual." Inventory "at the end of September was 13% higher than a year ago," while total sales rose 7.6% to $1.6B. Dick’s was "stung by record warm weather, which slowed sales of outerwear and other seasonal products, an unfortunate twist for the retailer that last year reshuffled its product mix to offer more apparel after the golf market took a dive." The warm weather had "actually helped golf sales reach positive comparisons to the year-earlier period after the business had dragged on results for the past year and a half." Overall, the Pittsburgh-based retailer reported profit of $47.2M for Q3, down from $49.2M a year ago. Q3 also "included a litigation settlement charge" of $7.9M. The retailer "now forecasts earnings for the year in the range of $2.85 to $3 a share, below its previous level of between $3.13 and $3.21." The company "forecast earnings in the fourth quarter between $1.10 and $1.25 a share, well below analysts’ expectations" (WSJ.com, 11/17). Shares of Dick's yesterday closed down 9.4% for the trading day. At presstime, shares were trading at $36.49, down 1.29% from the close yesterday (THE DAILY).