Analysis of inventories in the Sporting Goods industry

Hi, I'm initiating the coverage of Sporting Goods stocks for my pod. 

I would like to know what inventory ratios people are generally using to analyze the inventory position of those stocks ? 

Thanks in advance 

Comments (11)

Funniest
  • Analyst 3+ in HF - Other
18d

Don't worry you can trust me. I'm an anonymous buysider here on WSO. My analysis from Googling "sporting goods inventory ratio" tells me industry average is 2.71 from CSImarket.com.
 

That suggests someone like NKE might have too much inventory over the next few quarters and they might have to start discounting heavily which will hurt margins. My EBIT numbers are 20% below street and I have 30bps delta in operating margins. I think NKE is a short on this thesis.

My highly differentiated view on industry inventory turnover numbers is the main driver of this thesis. Don't worry - you can trust me. I'm a buysider (allegedly).

  • Research Analyst in HF - EquityHedge
18d

Are you OK dude ? 

Looks like someone got trapped in the classic Long PUMA/Short ADS...I know it hurts

  • Analyst 3+ in HF - Other
18d

I feel stupid having to explain this to you but my point is just go ask sellside what inventory ratio they use instead of random ass people on WSO.
 

  • Research Analyst in HF - EquityHedge
4h

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