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."


----------------- (Scroll Down For More) -----------------

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.”

_____________________________________________________
Got something to to say? Send us an e-mail at [e-mail] and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to [e-mail].

Trader disclosure: On Aug 20, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (MSFT), (WMT); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (MS), Najarian Owns (AAPL) And Is Short (AAPL) Call, Najarian Owns (ANR) And Is Short (ANR) Call, Najarian Owns (JOYG) Call Spread, Najarian Owns (LEH) Put Spread, Najarian Owns (NOK) And Is Short (NOK) Calls, Najarian Owns (XLY) Puts; Terranova Owns (AAPL), (BNI), (CME), (EOG), (FCX), (GS), (GOOG), (INTC), (KOL), (NOV), (POT), (RIMM), (SA), (XLF), (SU), (X), (VLO), (YHOO); Terranova Owns (AIG) Puts; Terranova Is Short Crude Oil Time Spread (Short Dec. 2009, Long Dec. 2012); Terranova Is Long Crude Oil Futures (Dec. 2012)

Terranova Is Chief Alternatives Strategist Of Phoenix Investment Partners, Ltd.; Phoenix Investment Partners Owns More Than 1% Of (ABD), (ARE), (BRE), (CNTY), (CLB), (OFC), (DLR), (ESS), (EXR), (FL), (IAT), (IGE), (LNET), (MAC), (OIIM), (PSPT), (DBC), (DBV), (SLB), (SKT), (BLV)

Terranova Is Co-Portfolio Manager Of The Phoenix Diversifier PHOLIO; Phoenix Diversifier PHOLIO Owns (IGE), (DBC), (DBV)