Sporting Goods Stores May Outperform: Big 5 Sporting Goods Corporation (BGFV), Foot Locker, Inc. (FL)

Hibbett Sports, Inc. (NASDAQ:HIBB)

Hibbett will probably release earnings in early March. The Alabama-based company is estimated to have earned $0.72 in the January quarter, up from $0.59 in the previous year. Its comparable store sales advanced 6.4% in the latest quarter, spurring a $0.13 EPS gain, to $0.73.

The retailer is experiencing heightened store productivity like its peers, as higher prices and increased volumes bolster the top line. Covering a greater geographical region of 26 states, Hibbett is building upon its location count (848 at 10/27/12, up from 815 at the same time in 2011). Notably, it intends to accelerate its pace of expansion this year and going forward, likely in light of the industry demand dynamics we are seeing. Hibbett, too, should have few obstacles to investing in its physical asset base.

HIBB shares are priced attractively based on its earnings prospects. With more aggressive expansion plans than others, the stock is more of a growth pick and does not pay a dividend.

Dicks Sporting Goods Inc (NYSE:DKS)

Dick’s is a company on a roll in terms of sales growth. Indeed, revenues climbed 12% in the October quarter on same-store revenue growth of 5.6%. The drivers have been gains from its core units, as well as Golf Galaxy and massive increases from e-commerce.

The store count is growing at its main Dick’s brand, a factor that ought to bolster ongoing sales gains. Essentially, as such, Dick’s is in a growth phase. Analysts think January-quarter earnings were $1.06 a share, up $0.18 year over year.

DKS shares may be a nice addition to a portfolio at this juncture, while the retailer’s growth phase persists.

Summary

Sporting goods retailers are quietly expanding their presence and popularity in the U.S. There is still likely time to invest and capitalize on the trend.

The article Sporting Goods Stores May Outperform originally appeared on Fool.com and is written by Damon Churchwell.

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