JDSPY

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

Dick’s Sporting Goods Down ~7% Year-to-Date; Sticking with It Long Term

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Image Source: Mike Mozart By Brian Nelson, CFA Dividend growth investing continues to face pressure during 2023 as investors have migrated to entities with strong net cash positions, solid free cash flow generation and secular growth prospects, many ideas of which can be found in the areas of big cap tech (XLK) and large cap growth (SCHG). The SPDR S&P Dividend ETF (SDY), which includes high-yielding Dividend Aristocrats, is down more than 4% so far in 2023 on a price-only basis and is off more than 6% over the past year, also on a price-only basis. With interest rates on the rise, the tradeoff between owning a certificate of deposit at the local bank yielding north of 5% and dividend … Read more

Dividend Increases/Decreases for the Week of July 7

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Below we provide a list of firms that raised their dividends during the week ending July 7. 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                          Agricultural Bank of China (ACGBY): now $0.6772 per share dividend. Bank OZK (OZK): now $0.36 per share quarterly dividend, was $0.35. Catskill Hudson Bancorp (CSKL): now $0.12 per share quarterly dividend. China Taping Insurance Holdings Company Limited (CTIHY): now $0.83 per share annual dividend. The Connecticut Light and Power Company 1.90 CUM PFD (CNLTL): now $0.475 per share quarterly dividend. The Connecticut Light and … Read more

Nike Beats Estimates Aided By Its Omni-Channel Selling Strength

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Image Shown: Shares of Nike Inc popped higher after its latest earnings report. By Callum Turcan On June 24, Nike Inc (NKE) reported fourth quarter earnings for fiscal 2021 (period ended May 31, 2021) that beat both consensus top- and bottom-line estimates. Shares of NKE popped higher after the report. The top end of our fair value estimate range for Nike sits at $160 per share, meaningfully above where shares of NKE are trading at as of this writing–even after the latest bounce in its stock price. Earnings Update Keeping in mind that the coronavirus (‘COVID-19’) pandemic creates a lot of noise when it comes to year-over-year comparisons, Nike’s GAAP revenues surged higher 96% year-over-year last fiscal quarter. Nike-branded footwear … Read more

Lululemon’s Growth Outlook Is Bright

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Image Source: Lululemon Athletica Inc – First Quarter of Fiscal 2021 IR Earnings Infographic By Callum Turcan Athleisure wear maker Lululemon Athletica Inc (LULU) recently reported first quarter earnings for fiscal 2021 (period ended May 2, 2021) that smashed past both consensus top- and bottom-line estimates. Its company-operated stores posted net revenue growth of 106% year-over-year as global economies began to recover from the coronavirus (‘COVID-19’) pandemic. The company’s direct-to-consumer (‘DTC’) net revenue grew 55% year-over-year (the e-commerce side of its business) last fiscal quarter, keeping in mind its DTC business more than doubled its net revenues in fiscal 2020. We were impressed with Lululemon’s latest results, and there could be room for shares of LULU to continue climbing higher. … Read more

Nike’s Digital Strategy Supports Its Future Revenue Growth and Margin Expansion Prospects

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Image Shown: Since announcing the launch of its Consumer Direct Offense initiative in June 2017, Nike Inc has done a stellar job building its omni-channel selling capabilities. The company’s digitally-oriented direct-to-consumer strategy offers it the opportunity to enhance both its long-term revenue growth outlook and operating margin expansion potential. On March 18, Nike reported mixed earnings though its near-term guidance indicates its financial performance will continue to rebound after taking a beating from the COVID-19 pandemic. As of this writing, shares of NKE are trading in the upper bound of our fair value estimate range, indicating shares are roughly fairly valued at this time. By Callum Turcan The coronavirus (‘COVID-19’) pandemic has made it clear that companies with strong omni-channel … Read more

Dividend Increases/Decreases for the Week of December 8

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Below we provide a list of firms that raised their dividends during the week ending December 8. 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                          Albany (AIN): now $0.26 per share quarterly dividend, was $0.25. Alexandria Real Estate Equities (ARE): now $1.27 per share quarterly dividend, was $1.24. AltaGas Ltd. (ATGFF): now CAD 0.2975 per share quarterly dividend, was CAD 0.28. Avis Budget (CAR): now $10.00 per share special dividend. Balchem (BCPC): now $0.79 per share annual dividend, was $0.71. Bristol-Myers Squibb (BMY): now $0.60 per share quarterly dividend, … Read more