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Mover Of The Day: Dick's Sporting Goods

It appears sports fan are helping at least one retailer make the best of their game play. On Thursday shares of Dick’s Sporting Goods popped after the company reported second-quarter results that beat Wall Street expectations.

The Pittsburgh-based company said profit fell 5 percent in the quarter, but adjusted results beat both the company's and analyst expectations.

Sports equipment retailers have suffered as consumers cut back on discretionary spending amid rising food prices, a shaky job market and tightening credit.

However, Citi analyst Kate McShane reiterated her "Buy" rating on the company.

"Despite macro pressures, Dick's management continues to execute its long-term strategy of double-digit square foot expansion while managing near-term costs and maintaining margins," McShane wrote in a note to investors. "Despite the run in the stock price today, we think the stock remains cheap and is an attractive entry point for investors."


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Sporting goods are discretionary purchases but Dick’s has been able to sustain demand because, “our business is pretty diverse," says Dick’s CEO Ed Stack on Fast Money. “

”Our athletic footwear has been good as well as athletic apparel. And the cycling business has been terrific,” he says. “With the high price of gas it seems to me that more people are using bicycles. Also everything in kids sports is doing well right now.”

In fact young athletes are the core of Dicks’ business with high school sports making the company somewhat recession resistant. “There will still be Friday night football and basketball season after that," says Stack. The sports that the kids are playing have not been affected by the economy.”




Sporting goods are discretionary purchases but Dick’s has been able to sustain demand because, “our business is pretty diverse," says Dick’s CEO Ed Stack on Fast Money. “

”Our athletic footwear has been good as well as athletic apparel. And the cycling business has been terrific,” he says. “With the high price of gas it seems to me that more people are using bicycles. Also everything in kids sports is doing well right now.”

In fact young athletes are the core of Dicks’ business with high school sports making the company somewhat recession resistant. “There will still be Friday night football and basketball season after that," says Stack. The sports that the kids are playing have not been affected by the economy.”



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