In an effort to continue with its strategy of expanding store
base and strengthening e-commerce capabilities to drive top-line
Dick's Sporting Goods Inc
) recently announced that it will open six new stores at different
locations in the United States. The company will be celebrating the
grand opening at these new locations between 18
The Pennsylvania, USA-based full-line sporting goods retailer,
will open two stores each in the New York City and Utah as well as
one each in North Carolina and California. The company capitalizes
on its extensive network of stores to effectively penetrate its
target markets and gain a competitive advantage over its rivals and
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
Prior to this, in September itself, the company added three new
stores - two in California and one in South Carolina.
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 these. For fiscal 2012, the company plans to
open approximately 38 Dick's Sporting Goods stores. Moreover, it
aims at relocating about five Dick's Sporting Goods stores and one
Golf Galaxy stores in 2012.
In the long-term, the company strategizes to open additional 400
stores, targeting a total store count of about 900 in the United
Dick's continues to establish a healthy vendor-customer
relationship and add 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
Under Armour Inc
As of July 28, 2012, Dick's Sporting Goods operated 490 stores
in 44 states. Additionally, the company operates 81 Golf Galaxy
stores in 30 states.
Currently, we maintain our long-term 'Neutral' recommendation on
the stock. Moreover, Dick's Sporting Goods, which competes with
Foot Locker Inc
Wal-Mart Stores Inc
), retains a short term Zacks #2 Rank (Buy rating).
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