Dick’s Down as Sports Retail Disappoints

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Dick’s Sporting Goods Inc. (NYSE: DKS) has been upfront in the news this week, after the company very publicly announced that it will halt sales of all assault-style and semi-automatic rifles. While the company was praised for this move, there are still some fundamental forces at work that  have a huge impact on the sporting goods retailer.

A few other sporting goods companies reported their earnings recently, and they are drawing this whole industry down. Seemingly this is proving that earnings can be more important than guns in the eye of the investor.

Early on Friday, we saw Foot Locker Inc. (NYSE: FL) report its most recent quarterly results. Although the company reported a beat on the bottom line, this wasn’t enough to offset revenues and declining comparable sales. As a result, investors voted with their shares and sent the stock lower.

As one of the major suppliers to Foot Locker, Nike Inc. (NYSE: NKE) also was punished by this earnings report.

Although J.C. Penney Co. Inc. (NYSE: JCP) does not tread in the sporting goods industry, its earnings as a retailer still have an impact on the retail sector as a whole. J.C. Penney saw its shares drop as well at the hand of weak earnings.

In J.C. Penney’s report, there were two obvious problems: fourth-quarter same-store sales missed estimates and revenues were light, both for the quarter and the full year. And those misses came against low expectations.

Shares of Dick’s were last seen down about 2% at $31.49, with a consensus analyst price target of $35.00 and a 52-week trading range of $23.88 to $52.89.

Foot Locker shares were down 15% at $38.94. The stock has a 52-week range of $28.42 to $77.86 and a consensus price target of $54.95.

Nike was last seen down 1.5% at $65.13 a share, with a 52-week range of $50.35 to $70.25 and a consensus price target of $67.47.

J.C. Penney traded down 5.7% to $3.70, with a consensus price target of $3.95 and a 52-week range of $2.35 to $6.40.