DKS

Dick’s Sporting Goods Raises Guidance as It Closes its Deal for Foot Locker

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Image Source: TradingView By Brian Nelson, CFA Dick’s Sporting Goods (DKS) recently reported second quarter results that came in better than expected. Net sales increased 5% on a year-over-year basis, with comparable sales coming in at a similar clip. Non-GAAP income before income taxes as a percentage of sales fell 93 basis points, however. Non-GAAP net income fell 2%, while non-GAAP earnings per diluted share was roughly flat on a year-over-year basis. Total debt was $1.5 billion at the end of the quarter, while cash and cash equivalents were $1.2 billion. Management had the following to say about the results: We are very pleased with our strong Q2 results. Our performance shows how well our long-term strategies are working, the … Read more

Dick’s Sporting Goods to Acquire Foot Locker

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Image: Dick’s Sporting Goods’ shares sold off on its announcement that it would acquire Foot Locker. By Brian Nelson, CFA On May 15, Dick’s Sporting Goods (DKS) announced that it would acquire Foot Locker (FL) in a transaction that implies an equity value of $2.4 billion and enterprise value of $2.5 billion. Foot Locker shareholders can elect to receive either $24.00 in cash or 0.1168 shares of Dick’s Sporting Goods common stock for each share of Foot Locker stock they own. Dick’s intends to finance the acquisition through a combination of cash on hand and new debt and is expected to close in the second half of 2025. Dick’s intends to operate Foot Locker as a standalone business unit within … Read more

Magnificent 7 Earnings Reports Not Bad Thus Far

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By Brian Nelson, CFA   Shortly after Trump’s Liberation Day, where the President unveiled lofty tariffs on numerous countries, we released our wait-and-see outlook for the equity markets, which thus far has proven to be the right move, with the markets largely recovering from the depths reached in April. The S&P 500 (SPY), for example, is down just 3.3% year-to-date, excluding dividends.   A lot has happened since Liberation Day, including easing of tariffs to a 10% baseline for most, if not all, countries, with the key exception of China, where tariffs remain extremely elevated and prohibitive. Many countries are now reportedly negotiating trade agreements with the White House, and we expect China to be added to that list soon, even if … Read more

Trump Tariffs Higher than Expected; What We’re Doing

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By Brian Nelson, CFA The Trump tariff increases came in larger than what we were expecting, and it remains to be seen how they will flow through the global economy, as we monitor potential retaliatory tariffs from other countries. As it relates to the equity markets, we’re taking a wait and see approach at the moment as we monitor new policy changes related to trade, immigration, fiscal (tax), and regulations. In short, we’re not overreacting to the sell off as we won’t have a great handle on the tariff impact to companies for a few quarters when they report results post-tariff increases. That said, we’re expecting continued market volatility, with meaningful risk to the downside, before trade uncertainty alleviates in … Read more

Dividend Increases/Decreases for the Week of March 14

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Below we provide a list of firms that raised their dividends during the week ending March 14. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          Acer (ACEYY): now NT 1.70 per share annual dividend, was NT 1.60. Afya (AFYA): now R$1.348923 pare share dividend. Aker Carbon Capture (AKRCY): now NOK 4.82 per share dividend. Altius Minerals Corporation (ALS:CA): now CAD 0.09 per share quarterly dividend, was CAD 0.08. Annaly Capital Management (NLY): now $0.70 per share quarterly dividend, was $0.65. Applied Materials (AMAT): now $0.46 per share quarterly dividend, … Read more

Dick’s Sporting Goods Raises Quarterly Payout

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Image Source: TradingView By Brian Nelson, CFA On March 11, Dick’s Sporting Goods (DKS) reported better than expected fourth quarter fiscal 2024 results, with both revenue and non-GAAP earnings per share outpacing the consensus forecasts. Net sales advanced 0.5% in the quarter on a year-over-year basis thanks in part to a 6.4% increase in comparable sales. Non-GAAP net income, however, fell 6% in the 13 weeks ended February 1, 2025. Non-GAAP earnings per share also dropped 6%. Management was upbeat in the press release: The convergence of sport and culture in our country has never been stronger, and with a series of major sporting events set to take place in the U.S., this momentum is only expected to grow through … Read more

Dick’s Sporting Goods Raises 2024 Guidance

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Image Source: Dick’s Sporting Goods By Brian Nelson, CFA On November 26, Dick’s Sporting Goods (DKS) reported better than expected third quarter results with revenue and non-GAAP earnings per share coming in above expectations. Net sales in the quarter advanced 0.5%, powered by a 4.2% in comparable store growth, which lapped 1.9% growth in the same period a year ago. Non-GAAP earnings per share fell 4%, to $2.75, but this was weakened by an unfavorable impact from a calendar shift to the tune of $0.35. Adjusted for this, non-GAAP earnings per share increased 8.8% in the quarter. Management was upbeat in the press release: Our strong third quarter results demonstrate the significant momentum we have in our business. We continue … Read more

Dick’s Sporting Goods Beats Second Quarter Numbers, Raises 2024 Outlook

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Image: Dick’s Sporting Goods has performed nicely since the beginning of 2022. By Brian Nelson, CFA Dick’s Sporting Goods (DKS) reported solid second quarter results September 4 with both revenue and non-GAAP earnings per share beating the consensus forecast. Net sales increased 7.8% in the quarter, while comparable sales growth totaled 4.5% for the period, lapping 2% from the year-ago period. Reported earnings per diluted share were $4.37 in the quarter, up 55% versus the same period a year ago. Management was upbeat in the press release: Our strong second quarter demonstrated the continued success of our long-term strategies and how DICK’S is truly differentiated within the industry. We are very enthusiastic about the significant growth opportunities ahead of us, … Read more

Paper: Value and Momentum Within Stocks, Too

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Please select the image below to download, “Value and Momentum Within Stocks, Too:” Abstract: This paper strives to advance the field of finance in four ways: 1) it extends the theory of the “The Arithmetic of Active Management” to the investor level; 2) it addresses certain data problems of factor-based methods, namely with respect to value and book-to-market ratios, while introducing price-to-fair-value ratios in a factor-based approach; 3) it may lay the foundation for academic literature regarding the Valuentum, the value-timing, and ultra-momentum factors; and 4) it walks through the potential relative outperformance that may be harvested at the intersection of relevant, unique and compensated factors within individual stocks. To download the full report, please click here (pdf). ———- Actual results … Read more

Nike’s Revenue Under Pressure

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Image: Nike’s shares have languished of late, and a comeback will take some time. By Brian Nelson, CFA On June 27, Nike (NKE) reported disappointing fourth quarter fiscal 2024 results and issued an outlook for fiscal 2025 that came up short relative to expectations. Revenue in the quarter fell 2%, missing the consensus estimate, but was flat on a currency-neutral basis. Revenue for its Nike brand advanced 1% on a currency-neutral basis, while Nike direct revenue fell 7% on a currency-neutral basis. Wholesale revenue was up 8% on a currency-neutral basis, while revenues for Converse dropped 17% on a currency-neutral basis. Nike’s guidance for 2025 wasn’t very encouraging. Here’s what the executive team said on the conference call: Now let … Read more