Sports Retailer Posting Big Gains on Accelerating E-Commerce Sales
Daily Stock Market Summary: US equity markets are posting an impressive show of confidence today, with broad-based gains on the heels of yesterday’s global selloff. Indeed, sources of volatility appear to be retreating on multiple fronts during today’s trading. Oil prices are recovering, a huge relief for the energy sector, even as Italian bonds (the main driver of yesterday’s selloff) appear to stabilize. Meanwhile, a round of excellent economic data was released by Germany today, providing a jolt of optimism for eurozone investors.
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Today’s Top Performer: Dick’s Sporting Goods (NYSE:DKS)
Recent months have exhibited starkly bifurcated results for retailers: firms that appear to successfully transition to an online sales model consistently post impressive gains. Companies struggling with digital commerce, however, have seen selloffs even in the wake of earnings beats.
Dick’s Sporting Goods, a specialty sporting goods retailer that operates over 760 stores across the US, has invested heavily in an online presence in recent years, including a full-featured league management suite for amateur sports leagues.
Their stock is posting dramatic gains today after the announcement of an impressive quarter: Q1 2018 earnings per share of $0.59 compared $0.52 in Q1 2017. Even more notably, e-commerce sales were up 24% on the quarter.
Investors have been piling into the stock on heavy volume since the announcement, driving the stock to gains around 27% at the time of this writing. Today’s gains mark the highest price point for Dick’s since August 2017.
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