Dick's Sporting Adds 3 New Stores - Analyst Blog

By Zacks.com October 29, 2012, 01:27:29 PM EDT

Sporting goods retailer, Dick's Sporting Goods Inc. ( DKS ), opened three new stores on October 24 in different locations across the United States, in keeping with its ongoing store expansion strategy. The latest announcements include the opening of stores at Westfield Wheaton in Wheaton, Maryland; at Center Park in Aberdeen, North Carolina; and at Westridge Center in Salinas, California.

Earlier this month, the company announced the debut of nine new stores in various parts of the United States. Additionally, in September, the company had opened ten stores at different locations across the country. The opening of stores remains in tune with the company's previously announced plan of inaugurating 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, it plans to relocate about five Dick's Sporting Goods stores and one Golf Galaxy store in 2012. In the long-term, Dick's Sporting aims at opening 400 additional stores, targeting a total store count of about 900 in the United States.

To date, Dick's Sporting operates about 511 stores in 44 states. Additionally, the company operates 81 Golf Galaxy stores in 30 states.

We believe Dick's Sporting continues to progress well with its growth initiatives, which include expanding its store base and bringing in technological advancements to better serve its patrons. The company's extensive network of stores helps it further to gain market share while boosting its top line and providing an competitive edge over its rivals, including Foot Locker Inc. ( FL ) and Wal-Mart Stores Inc. ( WMT ).

Apart from expanding its store base, Dick's Sporting is also focusing on buyers' needs to generate growth opportunities that will augment sales. The company aims at providing topnotch shopping experience to its customers and has introduced a new mobile application for iPhones and Android Smartphones.

We believe that the company's strategic measures of solidifying its store base and using technology to provide better customer services will enhance its relationship with clients and help attract and retain customers as well as promote its offerings.

Currently, we maintain our long-term Neutral recommendation on the stock. Dick's Sporting Goods retains a short term Zacks #2 Rank (Buy rating) for the next 1-3 months.



DICKS SPRTG GDS (DKS): Free Stock Analysis Report

FOOT LOCKER INC (FL): Free Stock Analysis Report

WAL-MART STORES (WMT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Business, Stocks

Referenced Stocks: DKS, FL, WMT



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