Semi-Automatic Guns 'Small' Part of Dick's (DKS) Business, Guidance Appears Intact
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Price: $51.68 -1.47%
Rating Summary:
18 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
18 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade DKS Now!
Dick's Sporting Goods (NYSE: DKS) recently announced it would end sales of semi-automatic sporting rifles. The decision was a response to the recent tragedy in Connecticut.
Commenting on developments, Sterne Agee analyst Sam Poser said, "We estimate that the guns and ammo business equals no more than 5% of total sales on a good day . . . We estimate that pulled semiautomatic rifles only make up a small part of the guns and ammo business."
Poser said he was "confident" that guidance calling for a 4 percent increase in 4Q same-store-sales will be achieved.
"We are forecasting a +3.1% comp in Dick's stores (versus -2.5% LY), a +2% comp at Golf Galaxy (versus +9% LY), and a 35% increase in e-commerce (versus +52% LY), which in total equals 4%. DKS is gaining share in the sporting goods space due to poor execution at The Sports Authority," said the analyst.
Stern Agee has a Buy rating on Dick's Sporting Goods (NYSE: DKS) with a price target of $56.
For an analyst ratings summary and ratings history on Dick\'s Sporting Goods click here. For more ratings news on Dick\'s Sporting Goods click here.
Shares of Dick\'s Sporting Goods closed at $45.87 yesterday, with a 52 week range of $34.42-$54.24.
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Commenting on developments, Sterne Agee analyst Sam Poser said, "We estimate that the guns and ammo business equals no more than 5% of total sales on a good day . . . We estimate that pulled semiautomatic rifles only make up a small part of the guns and ammo business."
Poser said he was "confident" that guidance calling for a 4 percent increase in 4Q same-store-sales will be achieved.
"We are forecasting a +3.1% comp in Dick's stores (versus -2.5% LY), a +2% comp at Golf Galaxy (versus +9% LY), and a 35% increase in e-commerce (versus +52% LY), which in total equals 4%. DKS is gaining share in the sporting goods space due to poor execution at The Sports Authority," said the analyst.
Stern Agee has a Buy rating on Dick's Sporting Goods (NYSE: DKS) with a price target of $56.
For an analyst ratings summary and ratings history on Dick\'s Sporting Goods click here. For more ratings news on Dick\'s Sporting Goods click here.
Shares of Dick\'s Sporting Goods closed at $45.87 yesterday, with a 52 week range of $34.42-$54.24.
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