Shares of Dick's Sporting Goods, Inc. (DKS, Financial), a leading sporting goods retailer, declined in the first quarter. Although the company reported a fourth quarter rise in same store sales of more than 7%, investors attributed a large portion of the strong sales growth to weather. A generally weak consumer outlook and increased competition from e-commerce are also feeding into investors' concerns about the strength of the traditional retail sector. We believe the company will continue to take market share from its retailer competitors, improve its private label business, increase its margins, open more very profitable stores, and grow its online presence. (Michael Baron)
From Baron Funds' first quarter 2014 letter to shareholders.
