During the 52-week period, the peak price level of the share was observed at $54.48; this is higher price of share and down price level of the share was seen at $33.42; this is lower price at which share is traded. Following the results, shares of the company jumped 8.6%.
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Analysts also raised their price target to $53 from $50 as the sporting goods retailer is expected to benefit from the bankruptcy of its largest competitor, Sports Authority, which is set to close most of its stores by the end of August.
Net sales advanced 6.1% to $1,660.3 million in the reported quarter, but missed the Zacks Consensus Estimate of $1,663 million. Same store sales for DICK’S Sporting Goods increased 0.4%, while Golf Galaxy increased 1.7%. “Although it’s a mess, it’s a great opportunity for Dick’s Sporting Goods …”
For the quarter ended April 30, Dick’s reported profit of $56.9 million, down from $63.3 million a year ago. Apart from this, the company authorized a new five-year buyback plan up to $1 billion in Mar 2016. The company’s shares closed yesterday at $69.20. The stock has a weekly performance of -1.66 percent and is 17.4 percent year-to-date as of the recent close. Dick’s namesakes stores recorded 0.4% growth. Same store sales for DICK’S Sporting Goods increased 0.4%, while Golf Galaxy increased 1.7%.
In a statement, Dick’s CEO Edward Stack said that the company expects to take a hit as Sports Authority stores liquidate and flood the market with under-priced merchandise, but said “over the longer term, we remain confident in our ability to aggressively capture displaced market share and to strengthen our leadership position”. In the second quarter, the company intends on introducing and relocating 5 and 2 namesake stores, respectively.
“Once this consolidation works its way through the system, we are poised to pick up significant market share”, Mr. Stack said.
On Wednesday, a trio of liquidation specialists reportedly won the auction for bankrupt Sports Authority. However, the company anticipates witnessing near-term pressure.
For fiscal 2016, the company now forecasts earnings in a range of $2.60 to 2.90 per share and consolidated same store sales of negative 1.0 percent to positive 1.0 percent.
Sales at existing stores edged up 0.5%, in line with the company’s forecast, and reversing a decline in the fourth quarter. Comps growth is now projected in a range of -1% to +1%, compared with flat to 2% increase guided earlier. The company most recent volume stood at 35.08 million shares as compared to average volume of 9.1 million shares.
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The company provided guidance for second-quarter earnings of 62 cents to 72 cents a share, while analysts were looking for 78 cents.
