Sporting goods retailer,
Dick's Sporting Goods Inc.
(
DKS
) recently announced that it would inaugurate five new stores on
October 31 at different locations across the United States. The
latest announcements include the opening of one store in Monroe
at Pecanland Mall and four stores in Oklahoma City at Shops at
Quail Springs, Fritts Farm, Westgate Marketplace and Town Center
Plaza.
Earlier this month, the company announced the debut of twelve
new stores in various parts of the United States. Additionally,
in September, it 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 existing stores.
For fiscal 2012, the company plans to open approximately 38
Dick's Sporting Goods stores. Moreover, it plans to relocate
about five existing stores and one Golf Galaxy store in 2012. In
the long-term, Dick's Sporting aims to open 400 additional
stores, targeting a total store count of about 900 in the United
States.
As of September 21, 2012, Dick's Sporting operated 500 stores
in 44 states. Additionally, the company operates 81 Golf Galaxy
stores in 30 states.
We believe that 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
add market share while boosting its top line and providing a
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 top-notch
shopping experience to its customers and has introduced a new
mobile application for iPhones and Android Smartphones in the
last month.
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,
help attract and retain customers and also promote its
offerings.
Currently, Dick's has a Zacks #2 Rank, which translates to a
short-term Buy rating. However, we remain slightly cautious on
the stock due to sluggish economic recovery along with high
household debt and unemployment level, which may restrain
consumers spending on sporting goods items. Therefore, we are
upholding our long-term Neutral recommendation, waiting to see
further catalysts before becoming more positive on the stock.
DICKS SPRTG GDS (DKS): Free Stock Analysis
Report
FOOT LOCKER INC (FL): Free Stock Analysis
Report
WAL-MART STORES (WMT): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research