Executive Summary

• Dick’s Sporting Goods reported 2Q 2016 EPS of $0.82 compared to $0.77 a year ago, and exceeded its guidance of $0.62–$0.72 and consensus of $0.69, driven by strong e-commerce growth and lower impact of its rivals’ liquidation activities.
• The expectations of management were low due to the liquidation activities of Dick’s rivals, Sports Authority and Sport Chalet, in many of Dick’s key markets. Dick’s has potential to gain significant share in these markets in the long term.
• Dicks Sporting Goods raised its FY 2016 EPS guidance to $2.90–$3.50 from previous guidance of $2.60–$2.90. Comps sales are expected to grow at 2%–3%, versus the previous expectation of -1%–1%.