jetcityimage
Dick’s Sporting Goods (NYSE:DKS) jumped in early trading on Wednesday after defying the theory that consumers were tapped out on spending more on discretionary items. The sporting goods giant impressed investors with a 5% increase in comparable sales for Q1 and a hike in full-year profit expectations.
During the earnings call, Chief Executive Officer Lauren Hobart noted that Dick’s (DKS) saw growth across all aspects of the business and nabbed more market share. The retailer also pointed to notable improvements with its shrink rate.
On Wall Street, Bank of America boosted its rating on Dick’s (DKS) to Buy following the report. The firm noted that Dick’s (DKS) omnichannel execution is well ahead of peers, and key brand partnerships are at all-time highs. Analyst Robert Ohmes pointed to improving footwear allocations from key vendors for Dick’s (DKS) and strong apparel momentum, led by exclusives.
The strong earnings report from Dick’s (DKS) appears to be lifting sentiment for a few other names as well. Gainers include Academy Sports and Outdoors (ASO) +2.1%, Foot Locker (FL) +1.1%, and Sportsman’s Warehouse Holdings (SPWH) +1.0%. Nike (NKE) traded flat even as the broad market swung slightly lower. As for DKS, shares were up 14.88% at 10:15 a.m. and carved out a new all-time high of $228.36 earlier in the session. Short interest on DKS stands at 10.6% of the total float, which may add to the post-earnings volatility.
