Wed, Mar. 4, 6:54 AM
- Dick's Sporting Goods (NYSE:DKS) remains the favorite name in apparel of Citigroup.
- The investment firm backed the sporting goods seller after taking in its Q4 report and 2015 outlook.
- Previously: Dick's Sporting Goods beats by $0.08, beats on revenue (Mar. 03 2015)
- Previously: Dick's Sporting Goods +2.9% as results impress (Mar. 03 2015)
Tue, Mar. 3, 7:56 AM
- Dick's Sporting Goods (NYSE:DKS) reports comparable-store sales rose 3.4% in Q4. The comp at Dick's-branded stores was up 3.8%, while golf demand continued to decline with Golf Galaxy showing a -7.1% comp.
- E-commerce penetration +220 bps to 14.4% of total sales.
- Gross profit rate -67 bps to 30.62%.
- SG&A expense rate -27 bps to 22.04%.
- Inventory +12.9% Y/Y.
- Store count +57 to 697 at the end of the fiscal year, including 9 new specialty stores added during the year.
- Full-year guidance: Comps are seen rising 1% to 3% in 2015. EPS of $3.10-$3.20 expected vs. $3.20 consensus.
- DKS +2.85% premarket.
Tue, Mar. 3, 7:31 AM
Mon, Mar. 2, 5:30 PM
Mon, Feb. 23, 8:10 AM
Thu, Feb. 12, 9:43 AM
- The read on retail sales in the U.S. isn't nearly as bad as the headline -0.8% M/M drop for January.
- Retail sales were up 3.3% compared to a year ago with a few sectors showing strong growth.
- Restaurant sales +11.3% Y/Y: The strong read follows up on a positive report from Black Box Intelligence on the sector. CAKE, CBRL, CMG, DPZ, DRI, EAT, JACK, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, BDL, NATH, LUB, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, PLKI, LOCO, YUM, KKD, TAST, GTIM, FRSH, COSI, FRS, PBPB, FRGI, QSR, CBRL, BLMN, ZOES.
- Sporting goods +8.0% Y/Y: DKS, BGFV, CAB, HIBB, SPWH.
- Building material and garden +6.9% Y/Y: A favorable weather compare came to the aid of this category. HD, LOW, LL.
- Health and personal care +6.6% Y/Y: Online channels have contributed for companies selling beauty and health items. ULTA, SBH, CVS, WBA, RAD.
Tue, Feb. 3, 6:46 AM
- Dick's Sporting Goods (NYSE:DKS) CFO Andre Hawaux will add the extra duties of serving as the company's COO.
- Hawaux's responsibilities now include finance, store operations, real estate, and human resources.
- Shares of DKS stumbled last week after reports emerged indicating that P-E firms were taking a pass on attempting to structure a takeover.
Fri, Jan. 30, 7:54 AM
- P-E firms are uninterested in a takeover of Dick's Sporting Goods (NYSE:DKS), sources tell the New York Post.
- A demand by CEO Edward Stack to keep his family highly involved in the business after a sale is choking off interest.
- Shares of Dick's spiked earlier this month off of takeover buzz.
- Previously: Dick's surges on going-private speculation (Jan. 07 2015)
- DKS -5.7% premarket.
Fri, Jan. 9, 5:47 AM
- Hundreds of January 2015 call options with a $53 strike price were purchased just after noon, just before reports surfaced that Dicks (NYSE:DKS) was holding informal buyout conversations with PE firms.
- The options netted the buyer nearly $450,000 on a $50,000 investment when the price skyrocketed after DKS shares, which had been halted, resumed trading.
- Fortuitous trades on Wall Street ahead of deal announcements are commonplace.
Wed, Jan. 7, 2:09 PM
- Tread carefully with Dick's Sporting Goods (NYSE:DKS), warns Oppenheimer (h/t Notable Calls).
- The investment firm thinks the go-private headline could be an attempt to "change the conversation" away from sales trends at the sporting goods retailer.
- DKS is +9.2% on volume more than 5X normal activity.
- Earlier: Dick's surges on going-private speculation
Wed, Jan. 7, 12:17 PM
- Reuters says Dick's Sporting Goods (NYSE:DKS) is holding early-stage talks with PE firms about going private.
- Shares +10.1%.
- Previously: Watch these 4 retail stocks for LBO action (Jan. 5)
- Previously: Retail trends to watch: Athleisure, P-E buyouts, and new online channels (Dec. 20)
Mon, Jan. 5, 8:50 AM
- The PetSmart LBO strategy could be utilized again in the retail sector amid the current low interest rate environment, note analysts.
- Bloomberg picks some top candidates to see a LBO play this year.
- GameStop (NYSE:GME): Valuation has been driven down to a level that could attract P-E firms.
- Bed Bath & Beyond (NASDAQ:BBBY): Spinoff opportunities and a lagging stock price make BBBY a LBO natural, note sector watchers.
- Pier 1 Imports (NYSE:PIR): A buyer would have plenty of opportunities to cut costs and set a turnaround strategy.
- Dick's Sporting Goods (NYSE:DKS): Perhaps the surprise in the bunch, but analysts see upside potential in a LBO scenario as a shift in focus is enacted.
- Previous on LBOs in retail: Retail trends to watch
Sat, Jan. 3, 7:51 PM
- The intense competition in retail over free shipping policies is expected to bring some pain to Q4 margins as big box and e-commerce firms scrap for market share, warn analysts.
- ComScore reports that free delivery on online purchases rose to 68% in 2014, up from 44% last year.
- Amazon (NASDAQ:AMZN): 2014 shipping costs were up 32% through Q3. That mark comes before a holiday season in which the company says it saved customers a mere $2B in shipping fees.
- Wal-Mart (NYSE:WMT): The Bentonville giant has already warned investors it will spend heavily on e-commerce and fulfillment center expansion as it eyes +30% growth in online sales. The company may have difficulty dialing back its free delivery policies, say industry insiders.
- Target (NYSE:TGT): Wolfe Research projects a 1% shift in Target sales to e-commerce cuts into the firm's profit margin by 5 bps.
- What to watch: Online sales rose 16% in Q3 vs. 4% for broad retail, a differential that is expected to have widened in Q4. Retailers with a sharp shift in mix to online could have trouble hitting consensus EPS estimates.
- Related stocks: BBY, DKS, CAB, SPLS, TJX, BIG.
- Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, IYK, FXD, IYC, FDIS, RHS, SCC, FSTA, UCC, PMR, UGE, RCD, PEZ, PSCD, SZK
Dec. 31, 2014, 9:43 AM
- The push by large-format stores to downsize gives growing retail chains an easy path to accelerate growth.
- ICSC notes the trend of real estate managers such as DDR Corporation (NYSE:DDR) to remerchandise high-quality space before lease expiration could increase even more in 2015.
- What to watch: Nordstrom Rack (NYSE:JWN), Trader Joe's, Sprouts Farmers Market (NASDAQ:SFM) Dick's Sporting Goods (NYSE:DKS), and Whole Foods Market (NASDAQ:WFM) are expected to continue utilizing sub-leases or reworked leases to add outlets. Fast-fashion retailers Hennes & Mauritz (OTCPK:HMRZF), Fast Retailing (OTCPK:FRCOY), and Inditex (OTCPK:IDEXY) might also take advantage of the trend as they look to increase their brick-and-mortar U.S. presence.
- Previously: Big box retailers expected to follow sub-leasing strategy (Dec. 30 2014)
Dec. 30, 2014, 1:26 PM
- Retail watchers think holiday traffic was solid for sports equipment sellers through the end of the holiday season.
- The observed calm pace of post-Christmas promotions indicates retailers were able to clear inventory at the expected rate.
- Several high-profile basketball shoe introductions ahead of Christmas was a factor this year.
- Related stocks: DKS, COLM, UA, NKE, FL, VFC.
Dec. 20, 2014, 10:17 AM
- The S&P Retail ETF (NYSEARCA:XRT) is up 3.4% over the last month to outpace the S&P 500 Index as consumer spending trends improve. Analysts have honed in on some categories which show some promise for growth.
- Drugstores: The transition by the sector into more health/wellness services sets it up for new growth channels. CVS Health (NYSE:CVS) reported strong comparable-store sales despite the full tobacco exit, while Rite Aid (NYSE:RAD) is prepping for a roll-out of RediClinics and HealthSpot kiosks. The visibility on Walgreen (NYSE:WAG) is somewhat clouded by the giant Alliance Boots integration, although it's ahead of rivals on the tech front with its rewards program, pharmacy app and developing online doctor concept.
- Athleisure: There's some gender initiatives going on in the athletic apparel sector with Under Armour (NYSE:UA) and Nike (NYSE:NKE) growing their women's business and Lululemon (NASDAQ:LULU) expanding on the men's side. All three companies have been closely on-trend with their assortment in a category with explosive demand. Importantly, pricing has held up this holiday season in the U.S., note retail watchers.
- Online replenishing: Fresh research into shopping trends indicates certain categories see continued buying through the online channel as consumers become attuned to a brand. Retailers positioned well to see more gains from the trend include Williams-Sonoma (NYSE:WSM), Ulta Beauty (NASDAQ:ULTA), Staples (NASDAQ:SPLS), Office Depot (NASDAQ:ODP), Sephora (OTCPK:LVMHF), Dick's Sporting Goods (NYSE:DKS), and of course Amazon (NASDAQ:AMZN).
- P-E buyouts: There are plenty of candidates in the retail sector for a leveraged buyout similar to the action that helped propel shares of PetSmart (NASDAQ:PETM) +40% from their lows. Keep an eye on Abercrombie & Fitch (NYSE:ANF), Aeropostale (NYSE:ARO), and Ann (NYSE:ANN).
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