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 

 

They also pay me not to trust the sell-side completely.

 
Funniest

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).

 

Are you OK dude ? 

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

 

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