Dick's Sporting Goods Inc
. (
DKS
), a full-line sporting goods retailer, continues to progress well
with its growth initiatives, which include expanding its store base
and strengthening its e-commerce business.
Following its rationale, the company opened three new stores
(two in California and one in South Carolina). The company
capitalizes on its extensive network of stores to effectively
penetrate its target markets and gain a competitive advantage over
its rivals and drive sales.
This is also well evident from the company's recently concluded
quarter, where net sales surged 10% to $1,437.0 million driven by a
3.8% rise in consolidated comparable-store sales (comps) and new
store openings.
The opening of stores remains in sync with the company's
previously announced plan of opening 21 stores in the third quarter
and relocating 3 of them. For fiscal 2012, the company plans to
open approximately 38 Dick's Sporting Goods stores. Moreover, the
company plans to relocate about five Dick's Sporting Goods stores
and one Golf Galaxy stores in 2012.
In the long-term, the company aims at opening additional 400
stores, targeting a total store count of about 900 in the United
States.
The company continues to establish a healthy vendor relationship
and adding exclusive and more favorable product mix. Moreover, to
generate incremental sales, Dick's Sporting Goods continues to roll
out its 'store within a store program' with
Nike Inc
. (
NKE
) and
Under Armour Inc
. (
UA
).
Dick's Sporting Goods operates through 490 stores in 44 states.
Additionally, the company operates 81 Golf Galaxy stores in 30
states.
Currently, we maintain our long-term Neutral rating on the
stock. However, Dick's Sporting Goods, which competes with
Foot Locker Inc
.
(
FL
) and
Wal-Mart Stores Inc
.
(
WMT
), holds a Zacks #2 Rank that translates into a short-term Buy
recommendation
DICKS SPRTG GDS (DKS): Free Stock Analysis
Report
FOOT LOCKER INC (FL): Free Stock Analysis
Report
NIKE INC-B (NKE): Free Stock Analysis Report
UNDER ARMOUR-A (UA): Free Stock Analysis Report
WAL-MART STORES (WMT): Free Stock Analysis
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