Back to top

Image: Bigstock

DICK'S Sporting Store Expansion On, Opens Concept Stores

Read MoreHide Full Article

DICK'S Sporting Goods, Inc. (DKS - Free Report) is on track with expanding the global footprint by store expansion efforts. To this end, the company announced two types of concept stores —OVERTIME by DICK'S Sporting Goods and DICK'S Sporting Goods Warehouse. This move is in sync with its plans to expand outlet and clearance stores in a bid to offer popular athletic brands at discounted prices.

Last year, the company had opened three clearance centers in Utica, MI; Spartanburg, SC; and Racine, WI. The current store openings will bring the total number of outlet and clearance stores to 11 in nine different states.

Notably, the first concept store type, OVERTIME, will offer a wide range of apparel, footwear and equipment products from well-known brands, including Nike (NKE - Free Report) , Adidas (ADDYY - Free Report) and Under Armour (UAA - Free Report) at up to 75% discount. The company is working on keeping inventory fresh for customers at these stores. It also noted that new markdowns will be added throughout the year.

Further, two OVERTIME stores in Connecticut and Maryland will start operating from today, while the one in Pennsylvania will be open from Jun 24.

Speaking of the second concept store, the company will open DICK'S Sporting Goods Warehouse at five locations. Customers will be offered upto 90% off on popular footwear and apparel brands. Such warehouses will also come with temporary pop-up-style shopping experience for the next six months. These warehouses are now open in Avon, IN; St. Peters, MO; North Olmstead, OH; South Hills, PA; and Brookfield, WI.

Moving on, DICK’S Sporting has reopened few stores since mid-April in sync with the CDC and local health guidelines following temporary store closures due to coronavirus. In this regard, roughly 80% of its stores are now open as of the end of May. Going ahead, it remains on track to reopen more stores in the second and third quarters of fiscal 2020. Moreover, the company highlighted that consolidated same-store sales have fallen 4% in the first four weeks of the second quarter compared with a 29.5% decline in the fiscal first quarter. This suggests that the reopening of stores is aiding sales.

That said, reopening stores and launching new ones to enhance the store business are likely to aid the company’s performance. Such endeavors have led this Zacks Rank #3 (Hold) stock to surge 140.4% in the past three months compared with the industry’s growth of 74.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.



 

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


NIKE, Inc. (NKE) - free report >>

DICKS Sporting Goods, Inc. (DKS) - free report >>

Adidas AG (ADDYY) - free report >>

Under Armour, Inc. (UAA) - free report >>