Full-line sporting goods retailer
DICK'S Sporting Goods Inc.
) is aggressively expanding its operations by opening stores at
new locations and collaborating with other companies to grow
business. The latter measure was evident from the company's
recently concluded multi-year partnership agreement with ESPN,
the all-sports media outlet owned by
The Walt Disney Company
As per the deal, DICK'S Sporting has now become an exclusive
e-Commerce supplier of all licensed merchandise and sporting
goods on ESPN.com as well as other related digital properties.
The company did not disclose any financial terms of the deal.
In the near future, the tie-up between two companies will
likely enable fans to purchase licensed fanwear available at the
ESPN.com, ESPN The Magazine, ESPN Radio and mobile properties
like ScoreCenter, GameCast and WatchESPN.
The agreement also strengthens its existing relationship with
ESPN. Prior to this, DICK'S Sporting and ESPN had jointly
sponsored the coverage of 'Champ Week' for college basketball
earlier this year. Apart from this, in late August, ESPN
telecasted DICK'S Sporting's 'Hell Week,' a documentary based on
an intense pre-season training camp of a high school football
teamon ESPN2 and ESPNU.
We believe that the partnership will facilitate DICK'S
Sporting to expand its customer base and drive top-line growth.
Apart from forming alliances with other companies, DICK'S
Sporting is expanding its store base to drive growth. The company
intends to increase retail store count to 800 by the end of
fiscal 2017 from 518 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.
DICK'S Sporting is also concentrating on customer needs in
order to boost sales. Further, to ease customers' shopping
experience, the company has introduced a mobile application for
iPhones and Android Smartphones that enables customers to locate
DICK'S Sporting stores in any particular area and buy goods
directly, using the application.
We believe that the company's strategic measures of
consolidating its store base and the use of technology to provide
better services will enhance its relationship with present
customers, attract new customers and effectively promote
Other Stocks to Consider
DICK'S Sporting currently carries a Zacks Rank #3 (Hold).
However, other stocks in the retail sector that are worth a look
Five Below, Inc.
). Both of these have a Zacks Rank #2 (Buy).
DISNEY WALT (DIS): Free Stock Analysis Report
DICKS SPRTG GDS (DKS): Free Stock Analysis
FIVE BELOW INC (FIVE): Free Stock Analysis
MARINEMAX INC (HZO): Free Stock Analysis
To read this article on Zacks.com click here.