Amid a tepid retail landscape, DICK'S Sporting Goods (DKS - Free Report) aggressively continues with its store expansion strategy. Recently, management also announced the opening of three flagship stores and one Field & Stream store across three states during the final weeks of September.
In fact, with the introduction of the latest stores, DICK'S Sporting’s countrywide store count will reach 713 in addition to 35 Field & Stream outlets.
The company will open a DICK'S Sporting store each at Gateway Mall in Lincoln, NE and Capital City Mall in Camp Hill, PA. Additionally, the company will open a DICK’S Sporting and Field & Stream store at Freedom Town Center in Fayetteville, NC.
Notably, the gala opening celebrations for the Lincoln and Fayetteville stores will take place through Sep 22 to Sep 24. Moreover, the Camp Hill store’s opening celebrations is scheduled from Sep 30 to Oct 1. These stores, in turn, are likely to help DICK'S Sporting in efficiently catering to the needs of these communities.
In order to lure customers during opening celebrations, the company has announced attractive gifts and opportunities to win prizes as well. Also, several special guests are invited to make in-store appearances.
Prior to the launch of these new outlets, DICK'S Sporting had introduced eight new flagship stores and two Field & Stream stores across six states in the first half of September.
DICK'S Sporting Performance
Though DICK'S Sporting continues with its store expansion efforts, it is not fully immune to the headwinds of a highly challenging retail scenario. Consequently, the company delivered its first negative earnings surprise in the last six quarters during second-quarter fiscal 2017. Also, the extremely competitive, volatile and promotional environment dented gross margin in the quarter.
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.
As a result, this Zacks Rank #5 (Strong Sell) company’s shares have plunged 55.2% in the past year, wider than the industry’s decline of 14.7%.
Nevertheless, the company remains on track with its omni-channel endeavors and solid e-commerce sales. Also, it is gaining from the liquidation of rivals. Though management is taking efforts to spark a turnaround, but surely the current circumstances cannot be ignored.
3 Retail Stocks to Steal the Show
Better-ranked stocks in the broader sector include Zumiez Inc. , Abercrombie & Fitch Co. (ANF - Free Report) and The Children's Place, Inc. (PLCE - Free Report) .
Zumiez, with a long-term earnings growth rate of 15% has delivered positive earnings surprise of 27.1% in the last four quarters. Currently, the stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Abercrombie, a Zacks Rank #1 stock has a long-term earnings growth rate of 14%. Also, it has pulled off positive earnings surprise of 52.9% in the last quarter.
Children's Place carries a Zacks Rank #2 (Buy) with a 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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