How Will Dick's Sporting Goods Fare After The Sports Authority Bankruptcy Announcement?

Dick's Sporting Goods, Inc. (DKS) Consumer Discretionary - Specialty Retail | Reports March 8, Before Market Open.

Key Takeaways:

• The Estimize consensus is calling for EPS of $1.17 and revenue of $2.27 billion, 1 cent higher than the Street on the bottom line and roughly $1 million less on the top line
• Dick's biggest competitor, Sports Authority recently filed for bankruptcy protection preparing to close 140 of 450 stores.
• DKS has been working extensively on store location and ecommerce growth, hoping to reach long-term revenue targets of $8.7-$9.0 billion.
• What are your thoughts on DKS? Click here to estimate!

Dicks Sporting Goods, one of the largest sporting goods retailers, is scheduled to report 4Q2015 earnings tomorrow morning, before the opening bell. In the past few years Dick's outlook has been gloomy with the company issuing lower than expected guidance at the start of fiscal 2015. However, after Sports Authority filed for bankruptcy, Dick's is poised to pounce on these assets leaving them as the leading sporting goods retailer. Within the next three months, The Sports Authority is closing 140 stores, some of which Dick's is expected to takeover.

Dick's Sporting Goods is currently in the midst of a rapid store expansion, bringing store location totals within the range of 735-750. If Dick's can leverage Sports Authority's closed branches on top of opening up new stores of its own then growth prospects appear incredibly attractive moving forward.

In addition to brick and mortar store growth, DKS has been working feverishly to drive online sales. Online sales accounted for 7.3% of total sales in Q3 2015, growing 8% from the previous quarter. With the combination of store expansion and ecommerce efforts, DKS believes its long-term revenue target of $8.7-$9 billion is attainable.

DKS management recently lowered its guidance for fiscal 2015, causing concern for investors and analysts. Despite initiatives for growth, overall comps are projected to be low due to unusually warm weather.  Same store sales only grew 0.4% last quarter against company guidance of 1%-3% growth.

Do you think DKS can beat estimates? There is still time to get your estimate in here!

Photo Credit: Mike Mozart