This summary was created by AI, based on 4 opinions in the last 12 months.
Dick's Sporting Goods (DKS-N) has demonstrated strong performance in the sporting goods sector, particularly with a recent report showing 4.5% same-store sales growth, alongside beating expectations for net sales and earnings per share (EPS). Despite the strong numbers, shares surprisingly dropped 10% due to the company's raised guidance aligning with street expectations and concerns over potential slowdown in back-half year performance. The company is investing heavily in long-term growth initiatives, which may impact short-term earnings, yet this has been viewed as a positive strategy by some experts. Furthermore, Dick's has showcased an impressive omni-channel approach, especially attracting younger consumers with its innovative app that enhances customer engagement and shopping experiences.
It's insane that shares dropped 10% this morning after they reported. They reported 4.5% same-store sales growth, beating, net sales also beat as well as EPS. Margins also expanded and raised their guidance. Shares fell because they raised guidance to where the street already was looking for, and their full-year forecast implies a slowdown in the back half of the year (2.5-3.5% same-store sales growth vs. the just-posted 4.5% growth). Also, the company has been investing in long-term growth and will double-down on that investment, but that will eat into earnings. He thinks that's great, but no some investors. This pullback is a buying opportunity. Among tailwinds is their app which boasts over 6 million users.
DKS tends to grow in the low-single digit range but shares are trading at 11X forward earnings, so this lower growth is reflected in the valuation. What DKS has done really well is with share buybacks, not being a stranger to repurchase nearly 10% of shares in some years. Cash flows are strong and we tend to prefer companies with higher growth rates in general, but we don't have a whole lot to be critical of here.
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DKS is very cheap now at 9X earnings. The dividend of 3.6% has shown good growth. While many retailers are experiencing consumer slowdowns, DKS has a 'theft' issue. Theft is the driving force behind Dick's Sporting Goods' 23% EPS drop in 2Q and lowered guidance for the full year, as sales trends were only slightly below expectations in the quarter. Management's revised outlook for fiscal 2023 non-GAAP EPS suggests growth of about 2.5% in 2H vs. 1H's 4% decline as the retailer remains focused on maintaining elevated gross margin, implements a cost-cutting plan and expands its store footprint. Gains in 2H may be more heavily weighted toward seasonally strong 4Q vs. 3Q. The company's unchanged projection for same-store sales to be flat to 2% higher this fiscal year suggests further deceleration in 2H from 2Q's 1.8%, which marked a four-quarter low, as year-over-year comparisons get tougher. Short sellers do often 'pick on' weakness, and it is likely also a short target just for its consumer exposure, as many short sellers expect a recession. Short interest is 12% now. The balance sheet is fine, and we do not think recent issues are fatal. It is priced well, but a recovery is going to take some patience. We would consider it a HOLD.
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Shares just slid 25% after a bad quarter. Earnings were down 23% YOY and slashed their earnings forecast 11%, but the stock was oversold. There were positives: they're gaining market share, and July sales were accelerating. Okay, margins were ugly. Excess inventory and theft were to blame. He's happy with the 3.6% dividend. He likes them unveiling House of Sports stores which include batting cages, artificial turf to try on cleat shoes and rock-climbing walls. These stores are experiences. Their golf sales tap into the rise in gold. Their new app for kids, Game-Changer, could become a major money-maker, worth over $1 billion by his research.
Dick's Sporting Goods is a American stock, trading under the symbol DKS-N on the New York Stock Exchange (DKS). It is usually referred to as NYSE:DKS or DKS-N
In the last year, 6 stock analysts published opinions about DKS-N. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Dick's Sporting Goods.
Dick's Sporting Goods was recommended as a Top Pick by on . Read the latest stock experts ratings for Dick's Sporting Goods.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
6 stock analysts on Stockchase covered Dick's Sporting Goods In the last year. It is a trending stock that is worth watching.
On 2025-04-01, Dick's Sporting Goods (DKS-N) stock closed at a price of $206.41.
It reports Tuesday. It's pulling ahead of peers in sporting goods. He expects strong numbers.