In apparel, Dick’s Sporting has been gaining market share in
athleisure and has seen strong comps. The company continues to invest in
athletic apparel and remains optimistic about this category. The hunting
category has been underperforming for a while and replacing this category with
other better-performing ones has helped improve margins.
The company has been investing in expanding its store network and has announced the opening of seven new stores in the past two months. Dick’s Sporting has also been working on developing its omnichannel capabilities and its ecommerce business is doing well.
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The company will also benefit from its ongoing digital
marketing efforts. However, higher costs and investment-related expenses are
likely to weigh on margins and this remains a concern for investors.
Analysts expect the company to report earnings of $1.22 per
share on revenue of $2.57 billion for the fourth quarter of 2019. The company
beat revenue and earnings estimates for the third quarter of 2019. Net sales
increased 6% to $1.96 billion while adjusted EPS totaled $0.52.
Owing to its ongoing development efforts and the momentum in its topline and margins, the stock might see a recovery in the coming days. The majority of analysts have rated the stock as Hold and it has an average 12-month price target of $49.80.