Dick’s Down as Sports Retail Disappoints

By Chris Lange Updated Jan 12, 2:48AM EST · Published Mar 2, 1:50PM EST

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Dick’s Down as Sports Retail Disappoints — © pecaphoto77 / iStock

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.

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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.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.