In sync with its expansion plans, DICK’S Sporting Goods, Inc. (DKS - Free Report) recently announced the opening of a store each, in California and Tennessee.
Grand events related to the opening of the California store were held between Jun 16 and Jun 18. Further, the store in Tennessee is anticipated to open on Jun 30, with celebrations extending till Jul 2. The company opened its California outlet at Milpitas, while the one in Tennessee will be located at Oak Ridge. With the opening of these new stores, the store count of DICK’S Sporting Goods will reach 704.
Moreover, in order to lure customers during the celebration, the company announced various lucrative deals and giveaways. Additionally, special appearances by sports celebrities are likely to attract shoppers even further.
The company has been undertaking store expansions for a long time now, as through opening of stores management hopes to serve consumers better, offering a wider array of products. Evidently, in the first quarter of fiscal 2017, DICK’S Sporting inaugurated 15 namesake stores, two Field & Stream outlets, and eight Golf Galaxy stores.
However, given the challenges looming over the retail space, many retailers like Macy’s, Inc. (M - Free Report) and American Eagle Outfitters Inc. (AEO - Free Report) and J. C. Penney Company, Inc. (JCP - Free Report) are concentrating on optimizing store fleet. Following suit, DICK’S Sporting also announced plans to bring a slowdown in its store growth plan. The company plans to reduce its store openings significantly from 43 namesake openings expected in fiscal 2017 to 15–20 in fiscal 2018 and narrowing down from five to no store openings in fiscal 2019.
In the last six months, the company’s shares have underperformed Zacks categorized Retail-Miscellaneous/Diversified industry, with its shares down 30.5% compared with the industry’s decline of 9.7%.
Nevertheless, DICK’S Sporting strategies of constant product and service upgradation within its stores, along with dedicated initiatives to improve e-Commerce sales are expected to benefit over the long run. Let’s see if these endeavors can help the stock revive.
DICK’S Sporting currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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