In line with its store expansion strategy DICK'S Sporting Goods (DKS - Free Report) recently announced plans to open 10 stores. These openings will comprise eight new flagship stores and two Field & Stream stores across six states during the first half of September.
With the introduction of these stores, DICK'S Sporting’s countrywide store count will reach 711 along with 34 Field & Stream outlets.
Of the eight new flagship stores, three will be located in California at Delta Shores in Sacramento, Stanford Ranch Crossing in Roseville and Solano Town Center in Fairfield. The remaining stores are scheduled to open at Meadow Glen Mall in Medford, MA; Village Square of Northbrook in Northbrook, IL; and Pooler Pointe in Pooler, GA. Additionally, the company will open DICK’S Sporting and Field & Stream stores at Huntington Mall in Barboursville, WV; and Viewmont Mall in Scranton, PA.
The launch of these stores, which will open doors between Sep 1 and Sep 17, is likely to help DICK'S Sporting in efficiently catering to the needs of these communities.
In order to lure customers during the opening celebrations, the company announced attractive offers and opportunities to win prizes. Also, several special guests are invited to make in-store appearances.
Prior to the launch of these new outlets, DICK'S Sporting declared plans to introduce two flagship stores and three Field & Stream stores during the first half of August. These outlets were scheduled to open doors in the states of Alabama, Texas and Georgia.
A Look at DICK'S Sporting Performance
We note that DICK'S Sporting’s shares have plunged more than 49% in the last six months, wider than the industry’s decline of 12.3%. This can be attributed to the challenging retail landscape, which caused this Zacks Rank #5 (Strong Sell) company to report its first negative earnings surprise in the last six quarters during second-quarter fiscal 2017.
Additionally, this leading full-line sporting goods retailer faced an extremely competitive, volatile and promotional environment, which dented gross margin. Going forward, management expects all these factors to linger through the rest of fiscal 2017. This along with projections of an extremely challenging hunting category compelled the company to cut its fiscal 2017 view.
3 Retail Stocks to Steal the Show
Some better-ranked stocks in the broader sector are Sally Beauty Holdings, Inc. (SBH - Free Report) , Five Below, Inc. (FIVE - Free Report) and The Children's Place, Inc. (PLCE - Free Report) .
Sally Beauty, with long-term earnings growth rate of 5.6% has delivered positive earnings surprise of 6.1% in the last quarter. Currently, the stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Five Below, which presently carries a Zacks Rank #2 (Buy), has an impressive long-term earnings growth rate of 28.5%. Also, its earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average of 8.7%.
Children's Place, a Zacks Rank #2 stock, has long-term earnings growth rate of 9%. Also, its earnings have outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with an average of 16.3%.
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