4 Takeaways From Dick's Sporting Goods (DKS) Positive Preannouncement - BofA Securities

BofA Securities analyst Robert Ohmes reiterated a Buy rating and $160.00 price target on Dick's Sporting Goods (NYSE: DKS) after the company pre-announced F4Q expectsing adj. EPS of $3.45-$3.55 and same-store sales of 3.7%-4.7% (vs. expectations for $2.76 and 1.1%). The analyst offered 4 key takeaways:

1) we see continued momentum in athletic apparel & footwear, team sports, and golf categories which we believe were significant drivers in F3Q and helped offset y/y declines in outdoor, home fitness, and bikes (see our DKS House of Sport Store Tour)
2) new Nike connected partnership should continue to drive better footwear allocations to DKS’s 419 full service footwear decks (we estimate DKS has increased full service footwear offering by 65-70% over past two years)
3) continued momentum in DKS higher margin private label business
4) DKS had likely already aggressively purchased inventory for Holiday ahead of supply chain issues and continues to “prioritize product over costs.”

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 $108.14 yesterday.

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