) is downgraded to Sell from Neutral. Sterne Agee said that it is downgrading from Neutral to Sell and establishing a $32 PT following weaker than expected quarter. “We are lowering our FY11 and FY12 estimates from $1.93 and $2.22 to $1.83 and $2.10. Inclement weather around the country caused SSS to be only +2.1% versus our expectation of +4.5%. SG&A leverage and an 84 bps increase in gross margin (all merchandise margin) led to the beat. Management also raised FY11 guidance EPS to $1.91-$1.93 on SSS of +3% (see page 2 for details). Given the pending cost inflation in apparel and footwear, we do not share management's confidence that margins will continue to expand throughout 2011 due to pending cost inflation and other corporate decisions. We are confident that the overall athletic footwear and apparel business is strong, but we believe that DKS is making decisions inconsistent with its premium image.” Dick's Sporting Goods closed yesterday at $39.42.