Sporting goods retailer,
Dick's Sporting Goods Inc.
) is slated to open three new stores, including one relocated
store, on November 7 at various locations across the United
States. Of the two new stores, one will be located at Stoneridge
Village in Jefferson City, Missouri; and another at Spokane
Valley Mall in Spokane, Washington. Further, the company will
relocate its N. Springboro Pike store to Dayton Mall in Dayton,
Last month, the company announced the debut of 17 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 the 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
Dick's Sporting's arch rival,
Big 5 Sporting Goods Corp.
), in its third quarter earnings release, announced plans to open
8 new stores in the fourth quarter of fiscal 2012, of which one
relates to relocation, and one store will be shut down. For
fiscal 2012, the company targets to open nearly 14 new stores, of
which three will be relocations.
Further, the company plans to close 6 stores, two of which
will be relocations. At year-end, the company's total store count
is currently expected to reach 414.
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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 peers.
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
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.