E-commerce is currently at an all-time high due to the pandemic, which is keeping most people away from stores. Notably,
DICKS Sporting Goods, Inc. ( DKS Quick Quote DKS - Free Report) has emerged as one such retailer, which has been dominating this space. The company’s increased focus on e-commerce, technology, store payroll, Team Sports and private brands seems to be paying off. Moreover, strong online demand and improved omni-channel capabilities, including curbside pickup services and BOPIS, bode well. As a result, the company’s e-commerce sales soared 95% in the fiscal third quarter, accounting for nearly 21% of net sales. Further, mobile sales penetration grew more than 50% with an uptick in mobile app downloads. Also, its stores fulfilled roughly 70% of online sales to meet customers’ growing online demand. Management remains on track to build the best omni-channel experience for athletes by strengthening store network and expanding e-commerce presence. Other retailers witnessing robust digital sales growth for the past few months include American Eagle Outfitters ( AEO Quick Quote AEO - Free Report) , PVH Corp. ( PVH Quick Quote PVH - Free Report) and Nordstrom ( JWN Quick Quote JWN - Free Report) . Although in-store revenues for American Eagle fell 16% in the fiscal third quarter, digital sales rose 29%. While PVH Corp.’s sales declined 18% in third-quarter fiscal 2020, digital sales grew 36% year over year. Also, e-commerce sales for Nordstrom grew 37% in third-quarter fiscal 2020, representing 54% of overall sales. Coming back to DICK’S Sporting, the company witnessed a solid online show during the Black Friday sale, which started earlier this year and spanned for 10 days. The company gained from its newly launched omni-channel services, including mobile checkout and return stations, a Shop/Click/Pay app at a few locations and a store management plan across the United States. With flexible pickup and fast shipping facilities in place, DICK’S Sporting is likely to benefit in the near and long term. Apart from strength in the online platform, favorable customer demand and a solid product portfolio contributed to the company’s third-quarter fiscal 2020 results, wherein both top and bottom lines improved year over year. Also, strength in hardlines, apparel and footwear acted as an upside. Moreover, store comps grew in doubledigits and accounted for 90% of third-quarter sales. The company also noted that this strong momentum continued in the fourth quarter. In fact, consolidated comps grew in high teens in the first three weeks of the fourth quarter. Shares of this Zacks Rank #1 (Strong Buy) company have gained 8.2% year to date, outperforming the industry’s growth of 7.5%. You can see . the complete list of today’s Zacks #1 Rank stocks here Wrapping Up
Despite COVID-related costs and continued uncertainties, robust omni-channel solutions and strong demand for certain products stemming from lifestyle changes in the recent COVID-19 scenario are likely to cement DICK’S Sporting’s position in investors’ good books.
In fact, the Zacks Consensus Estimate for fiscal 2021 earnings has risen 17.3% in the past 30 days to $5.02 per share. Topping it, a VGM Score of A and a long-term earnings growth rate of 5.6% raise optimism in the stock. The Hottest Tech Mega-Trend of All
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