Diamonds and Dogs
Dicks (DKS) reports strong first quarter results, allaying concerns that its controversial decision to tighten gun policies would damp demand at the sporting-goods chain. Dick's stock is jumping 25% as earnings beat by 10 cents as sales rose 4% to $1.91 billion. Dicks also raised estimates for the full year. Sales were driven by higher digital sales as well as increasing sales from private brands. e-Commerce sales rose 24%, but big brands, Nike and Adidas are offering goods on Amazon looking to go more direct selling to customers.
Michael Kors (KORS) taking a hit down 12% even as the company swung to a fiscal fourth-quarter profit. The company also raised current quarter guidance, but the stock is lower due to a cautious outlook for the full year. Many high-end retailers have been trying to overhaul their business as shoppers shift many of their purchases online. There seems to be an abundance of luxury goods at lower prices online. As one analyst put it, "The foundation may be in place, but the walls are only part way up and the roof is not yet on. There is more work to do."