Dick's Sporting Goods Cracker Barrel Wayfair
Susquehanna Financial Group forecasts that Dick's Sporting Goods Inc. DKS, -1.57% will be the last national athletic retailer in business after the coronavirus pandemic thanks to factors including its balance sheet and digital capabilities. Other athletic retailers include Hibbett Sports Inc. HIBB, 2.51% and Foot Locker Inc. FL, 5.73%. "Dick's is reaping the benefits from heavy investment in its omnichannel capabilities over the past several years, enabling the company to be extremely flexible and nimble in the way it serves customers," analysts led by Sam Poser wrote. "This flexibility has been evident during the crisis, when selling through the brick-and-mortar channel has not been an option." Dick's Sporting Goods was able to transition to curbside pickup with ease thanks to these investments, analysts say. And they highlight a 250% jump in e-commerce sales in the second quarter thus far. Analysts say there could be some "fleeting" pent-up demand due to the coronavirus pandemic, but also say Dick's Sporting Goods has a "structural advantage" that will help it versus the competition in the long run. Susquehanna rates the stock positive with a $48 price target, up from $31. Data from retail intelligence company Placer.ai shows that in some states including Arizona and South Carolina traffic returned to year-over-year growth by May 20. Dick's Sporting Goods reported wider-than-expected losses on Tuesday. The stock is down 1.3% in Wednesday trading, and has slumped 24.7% for the year to date. The S&P 500 index SPX, 1.07% is down 3.6% for 2020 so far.
Shares of Cracker Barrel Old Country Store Inc. CBRL, +9.74% soared 11.4% in Wednesday trading after the restaurant and retail chain was upgraded to buy from hold at SunTrust Robinson Humphrey. Analysts moved their price target to $133 from $117. SunTrust cites near-term dine-in same-restaurant sales, which are down 32% for the week ending May 29, with the company expected to offer dine-in service systemwide on June 30. Analysts also think Cracker Barrel's "rural exposure and everyday value [mitigates] COVID and economic risks." Cracker Barrel announced fiscal third-quarter earnings on Tuesday. The company posted a net loss of $161.9 million, or $6.81, after earnings of $50.4 million, or $2.09, last year. Adjusted loss per share was $1.81. Revenue totaled $432.5 million, down from $739.6 million last year. The FactSet consensus was for losses of $1.06 per share and revenue of $477.8 million. Same-restaurant sales were down 41.7% for the quarter, and same-store sales were down 45.5%. Cracker Barrel stock has slumped 22.5% for the year to date while the S&P 500 index SPX, +1.06% is down 3.7%.
Wayfair stock is trading sharply higher Tuesday, getting a lift from bullish comments from Piper Sandler retail analyst Peter Keith, who says tailwinds the online home-furnishings retailer saw in April largely continued in May.
Wayfair’s (ticker: W) strong first-quarter results, reported on May 5, triggered a surge in the company’s shares that has not really stopped. Revenue in the quarter rose 19.8%, which was a bit ahead of estimates, but the stunner was the company’s disclosure that second-quarter revenue at that point...
Wayfair Stock Has Rocketed 700% Since March. Why There May Be More Gains Ahead.