Dick's Sporting Goods: Winning The Retail Game, Says Analyst

Telsey Advisory analyst Joseph Feldman reiterated an Outperform rating on the shares of Dick's Sporting Goods Inc DKS with a price target of $160.
Dick's Sporting Goods had a solid 1Q23, as consumers continued to spend on sporting goods, resulting in inline sales with a comp of 3.4% versus an estimate of 3.4%.
The sales growth and good execution helped lead to a better-than-anticipated gross margin. However, the SG&A ratio was higher than expected, noted the analyst.
The 1Q23 earnings beat and maintained 2023 guidance is encouraging and supports the analyst's view that the company is gaining share in sports and outdoor equipment and athletic apparel & footwear.
The analyst commented that the deteriorated macroeconomic environment and higher costs and promotions remain potential headwinds going forward.
The analyst views Dick's as a long-term share gainer through its unique assortment of national brands, differentiated private brands, and e-commerce.
Price Action: DKS shares are trading lower by 1.17% at $124.92 on the last check Tuesday.

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