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DKS' Omnichannel Efforts Seem Robust: Should You Buy the Stock?
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DICK'S Sporting Goods, Inc. (DKS - Free Report) shares have been trending up the charts to date this year, recording growth of 48.7% against the Zacks Retail - Miscellaneous industry‘s 1.6% decline and the broader Retail-Wholesale sector’s return of 21.1%. DKS’s shares have also surpassed the S&P 500 index’s appreciation of 21.6% year to date.
DKS is well-poised to tap the positive trends in the sporting industry, thanks to its robust strategies, including merchandising initiatives and store-related efforts.
DKS’ Omnichannel Efforts to Lift Sales
DICK’S Sporting is emphasizing the omnichannel athlete experience to drive athlete engagement. It has been enhancing service levels at its digital and store experiences to cater well to athletes. The company is experiencing growth in omnichannel athletes’ performance. It also continues to invest in the digital capabilities.
DKS Price Performance
Image Source: Zacks Investment Research
Further, the company is making significant investments to reposition its portfolio to deliver an elevated omnichannel athlete experience. Management expects House of Sport and the next-generation 50,000 square foot DICK's store to boost strong omnichannel athlete engagement, and in turn, generate huge sales and profitability.
In the second quarter of fiscal 2024, the company opened two DICK'S Sporting Goods and five Specialty Concept stores. It also announced plans to open its 15th House of Sport location and is on track to introduce an additional five locations in fiscal 2024. It has revolutionized its most typical format, the 50,000 square-foot DICK’S store, into the Field House concept. The Field House concept is inspired by the House of Sport, offering interactive experiences with unique presentation and service. Such stores have been performing extremely well.
The company is gaining from brand strength and demand for its products that resonate well with customers. Undoubtedly, management is focused on creating a trend-right merchandise assortment, deepening relations with customers via marketing and efficiently controlling expenses.
DKS’ Earnings Estimate Revisions
Given the positive sentiments regarding the stock, the Zacks Consensus Estimate for fiscal 2024 and 2025 has been northbound. In the past 30 days, the consensus estimate for earnings per share (EPS) has been revised 1% to $13.90 for fiscal 2024 and 0.3% to $14.78 for fiscal 2025. This implies year-over-year earnings growth of 7.7% and 6.3%, respectively, for fiscal 2024 and 2025.
DKS Stock’s Valuation
DICK’S Sporting stock is trading at an attractive valuation relative to the industry. Going by the price/earnings ratio, it is currently trading at 13.99 on a forward 12-month basis, lower than 16.75 of the industry.
Conclusion
The aforesaid strengths are likely to continue to boost growth and bolster DKS’s performance ahead. Solid upward revisions in earnings estimates and the stock’s attractive valuation bode well. Given all the positives, this Zacks Rank #2 (Buy) company seems to deserve a place in your investment bucket.
The Zacks Consensus Estimate for Abercrombie’s current financial-year sales indicates growth of 13.1% from the year-ago figure. ANF delivered an earnings surprise of 16.8% in the last reported quarter.
Boot Barn, a leading footwear, apparel and accessories retailer, currently sports a Zacks Rank of 1. BOOT delivered an average earnings surprise of 7.1% in the trailing four quarters.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales indicates growth of 11.6% from the year-ago figure.
Deckers, a footwear and accessories dealer, currently carries a Zacks Rank of 2. DECK delivered an average earnings surprise of 47.2% in the trailing four quarters.
The Zacks Consensus Estimate for Deckers’ current financial-year sales indicates growth of 11.5% from the year-ago figure.
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DKS' Omnichannel Efforts Seem Robust: Should You Buy the Stock?
DICK'S Sporting Goods, Inc. (DKS - Free Report) shares have been trending up the charts to date this year, recording growth of 48.7% against the Zacks Retail - Miscellaneous industry‘s 1.6% decline and the broader Retail-Wholesale sector’s return of 21.1%. DKS’s shares have also surpassed the S&P 500 index’s appreciation of 21.6% year to date.
DKS is well-poised to tap the positive trends in the sporting industry, thanks to its robust strategies, including merchandising initiatives and store-related efforts.
DKS’ Omnichannel Efforts to Lift Sales
DICK’S Sporting is emphasizing the omnichannel athlete experience to drive athlete engagement. It has been enhancing service levels at its digital and store experiences to cater well to athletes. The company is experiencing growth in omnichannel athletes’ performance. It also continues to invest in the digital capabilities.
DKS Price Performance
Image Source: Zacks Investment Research
Further, the company is making significant investments to reposition its portfolio to deliver an elevated omnichannel athlete experience. Management expects House of Sport and the next-generation 50,000 square foot DICK's store to boost strong omnichannel athlete engagement, and in turn, generate huge sales and profitability.
In the second quarter of fiscal 2024, the company opened two DICK'S Sporting Goods and five Specialty Concept stores. It also announced plans to open its 15th House of Sport location and is on track to introduce an additional five locations in fiscal 2024. It has revolutionized its most typical format, the 50,000 square-foot DICK’S store, into the Field House concept. The Field House concept is inspired by the House of Sport, offering interactive experiences with unique presentation and service. Such stores have been performing extremely well.
The company is gaining from brand strength and demand for its products that resonate well with customers. Undoubtedly, management is focused on creating a trend-right merchandise assortment, deepening relations with customers via marketing and efficiently controlling expenses.
DKS’ Earnings Estimate Revisions
Given the positive sentiments regarding the stock, the Zacks Consensus Estimate for fiscal 2024 and 2025 has been northbound. In the past 30 days, the consensus estimate for earnings per share (EPS) has been revised 1% to $13.90 for fiscal 2024 and 0.3% to $14.78 for fiscal 2025. This implies year-over-year earnings growth of 7.7% and 6.3%, respectively, for fiscal 2024 and 2025.
DKS Stock’s Valuation
DICK’S Sporting stock is trading at an attractive valuation relative to the industry. Going by the price/earnings ratio, it is currently trading at 13.99 on a forward 12-month basis, lower than 16.75 of the industry.
Conclusion
The aforesaid strengths are likely to continue to boost growth and bolster DKS’s performance ahead. Solid upward revisions in earnings estimates and the stock’s attractive valuation bode well. Given all the positives, this Zacks Rank #2 (Buy) company seems to deserve a place in your investment bucket.
Other Key Picks
We have highlighted three other top-ranked stocks, namely Abercrombie (ANF - Free Report) , Boot Barn (BOOT - Free Report) and Deckers (DECK - Free Report) .
Abercrombie & Fitch, a leading casual apparel retailer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie’s current financial-year sales indicates growth of 13.1% from the year-ago figure. ANF delivered an earnings surprise of 16.8% in the last reported quarter.
Boot Barn, a leading footwear, apparel and accessories retailer, currently sports a Zacks Rank of 1. BOOT delivered an average earnings surprise of 7.1% in the trailing four quarters.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales indicates growth of 11.6% from the year-ago figure.
Deckers, a footwear and accessories dealer, currently carries a Zacks Rank of 2. DECK delivered an average earnings surprise of 47.2% in the trailing four quarters.
The Zacks Consensus Estimate for Deckers’ current financial-year sales indicates growth of 11.5% from the year-ago figure.