DICK'S Sporting to Launch Store in Chicago - Analyst Blog

DICK'S Sporting Goods Inc. DKS is aggressively continuing with the expansion strategy as it announced the opening of yet another store at a prime location. The new store will be located at The Maxwell shopping zone at Canal Street in Chicago, IL.

This store will be DICK'S Sporting's 24th outlet in Illinois and increase the overall tally in the country to 571. The celebrations to mark the opening of the store will commence from Jun 13 and extend over the weekend. Also, the store will remain open for longer hours over the same time frame.

The store offerings will include over 40 in-store services provided by DICK'S Sporting's certified PROS in sports and outlook specialties including, Bike, Golf and Fishing.

Moreover, in order to enhance footfall at its new store during the celebration, DICK'S Sporting announced a range of lucrative giveaways. The company will distribute free Reebok Play Dry® T-Shirts to the first 100 people in queue on the opening day. Also, the customers who reach early will get an opportunity to open the DICK'S Sporting Goods Gift Locker, on all 3 days. Further, on Saturday and Sunday, it plans to give free Mystery Gift Cards worth $5–$500 to the first 100 adults in line.

Apart from these alluring offers, the company has invited Brandon Marshall, a popular football player, to make a special appearance at the store on the final day.

We believe that DICK'S Sporting's strategic measures of consolidating its store base and the use of technology to provide better services are likely to strengthen its relationship with present customers while attracting new ones. These initiatives are expected to effectively promote its products. We believe that the company will benefit from its in-store action and online growth plans.

DICK'S Sporting currently carries a Zacks Rank #5 (Strong Sell) as it recently posted lower-than-expected first-quarter fiscal 2014 results and lowered its fiscal guidance.

The company's adjusted earnings of 50 cents per share not only missed the Zacks Consensus Estimate of 53 cents but also came below its own guidance range of 51–52 cents. Management blamed the miss on the unfavorable weather, which negatively impacted its golf and hunting businesses.

For fiscal 2014, management now anticipates earnings per share to be between $2.70 and $2.85, down from the previous forecast of $3.03–$3.08. Currently, the Zacks Consensus Estimate stands at $2.78 per share.

Other Stocks to Consider

Some better-ranked stocks in the same industry include ITOCHU Corporation (ITOCY), Office Depot, Inc. ODP and Five Below, Inc. FIVE, each carrying a Zacks Rank #2 (Buy).

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