Dick's Stock Analysis

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TOWSON INVESTMENT CLUB Stock Analysis Investing in Dick’s Sporting Goods (DKS) Kristal Ricks November 7, 2012 Summary I highly recommend investing in Dick’s Sporting Goods stock now at the current price of $51.32. It is a great long-term investment because the stock price continues to increase every year. Dick’s Sporting Goods (DKS) has shown consistent growth over recent fiscal years, as net sales, gross profit, revenue and net income have increased significantly. Dick’s is a sporting goods retailer offering a broad assortment of brand name sporting goods equipment, apparel, and footwear in a specialty store environment. With over 500 stores, Dick’s has continued to expand and add stores at a steady rate of about 15% a year (CNN, 2012). The company recorded revenues of $4,871.4 million during the fiscal year ended January 2011, an increase of about 10% over 2010 (Value Line, 2012). The increase in revenues is attributed to expansion with new store sales and the addition of e-commerce sales. Company and Industry Analysis Dick’s Sporting Goods, is an authentic sporting goods retailer founded in 1948, by Richard Dick Stack. It currently operates over 500 stores in 40 plus states mainly in the eastern parts of the United States, and hopes to get up to 800 one day. Dick’s also operates 80 Golf Galaxy stores in 30 states, as well as two other subsidiaries Galyan’s Trading Company and Chick’s Sporting Goods. The acquisition of the Golf Galaxy stores made Dick’s subsidiary become the largest golf retailer in America (Dick’s, 2012). Dick’s main goal is to attract consumers seeking genuine sports and outdoor products with the latest trends and unique designs (Easley, 2012). Another one of Dick’s main goals is to be a high quality retailer at competitive prices while offering great customer service.

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