Dick’s Down as Sports Retail Disappoints
Dick’s Sporting Goods 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.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
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.
[nativounit]
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.
[recirclink id=445111]
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
