Full-line sporting goods and apparel retailer
DICK's Sporting Goods Inc.
) declared its major strategies to boost sales, operating profit
as well as shareholder value over the next five years at its
annual Analyst Day meeting held yesterday.
As part of its key financial targets, DICK's Sporting hopes to
increase revenues to $10.0 billion by 2017, recording a 5-year
compounded annual growth rate (CAGR) of approximately 11% from
revenues of $5.8 billion in fiscal 2012. The company intends to
achieve its long-term revenue target through expanding stores and
Moreover, DICK's Sporting plans to increase its retail store
count to 800 by the end of fiscal 2017 from 518 stores at the end
of fiscal 2012. Further, the company will remodel its existing
stores from time to time in order to keep them up-to-date and
productive. Additionally, the company will stay focused on
maintaining strong relations with its vendors, introducing
fashionable products and concentrating on high growth categories
such as Women and Youth.
Moreover, DICK's Sporting intends to increase its e-Commerce
sales to nearly $1.1 billion by the end of fiscal 2017, from $292
million at the end of fiscal 2012. For this, the company will
control its e-Commerce platform beginning with Golf Galaxy and
Field & Stream in 2014, and DICK's Sporting from fiscal
With an estimated market of over $30 billion for outdoor
activities such as fishing and hunting, DICK's Sporting plans to
generate revenues of $750 million by the end of fiscal 2017
through its Field & Stream outdoor specialty stores. To
achieve this end, it intends to increase the Field & Stream
store count to approximately 55 by fiscal 2017-end. For this
expansion, DICK's Sporting will invest around $1.8 billion over
the next five years.
Additionally, the company increased its forecast for operating
margins on the back of gross margin expansion and effective cost
management. The company now expects operating margin for fiscal
2017 to grow to 10.5%, expanding 150 basis points from 9% in
Furthermore, DICK's Sporting announced that it would continue
to focus on enhancing shareholder value through share repurchases
and dividend payouts.
We believe that the strategies and targets outlined in the
meeting, along with DICK's Sporting's diverse brand portfolio,
brand management, excellent operating team and competitive
advantages position it well for long-term growth. With these
targets, the company is expected to successfully deliver value to
both consumers and shareholders, going forward.
DICK's Sporting currently has a Zacks Rank #4 (Sell). However,
other stocks performing well in the retail industry include
Michael Kors Holdings Limited
Gildan Activewear Inc.
). While Hanesbrands and Michael Kors carry a Zacks Rank #1
(Strong Buy), Gildan has a Zacks Rank #2 (Buy).
DICKS SPRTG GDS (DKS): Free Stock Analysis
GILDAN ACTVWEAR (GIL): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
MICHAEL KORS (KORS): Free Stock Analysis
To read this article on Zacks.com click here.