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History was made on Wednesday as the Chicago Cubs broke their 108-year curse, winning the World Series over the Cleveland Indians. This news doesn’t just end the anguish and suffering of millions of Cubs fans, but it also helps Dicks Sporting Goods DKS.
DKS is currently trading at $56.78 per share with a quarter earnings ESP of 2.38%, according to Zacks. The implication is that DKS will see a terrific rise in sales and profits for its upcoming Q3 earnings reports.
The news of rival Sports Authority going under back in March has only benefited DKS. CNN Money reported that, “Dick’s executives told analysts on an earnings conference call last month that Dick’s had acquired the rights to more than 30 Sports Authority stores, as well as the chain’s brand name, customer list and online operations.” This gives DKS an immense advantage, as they are able to acquire many, if not all, of their old rival’s customers.
In terms of the Cubs affect on DKS, the influence has already begun. ESPN reported that, “Factoring in sales from the local market, sources say the Cubs’ first 24 hours of sales should approach $70 million in retail sales, which would make it the hottest postgame championship market of all time.” The demand for Cubbies gear has never been higher. The gear is being issued out by many major brands, including New Era Cap, Nike NKE, Majestic, Columbia COLM, and many more.
What gives DKS the competitive advantage over other retailors is the fact they carry all of these brands, unlike many other competitors. DKS Q3 earnings will be released on November 15th. Its worth mentioning that the Zacks Rank currently has DKS at a #1 (Strong Buy) and VGM grade of ‘A.’ With positive earnings in the past two quarters, added to the fact the Cubs championship will boost sales, concludes that DKS will likely see a positive Q3 earnings report for investors. Look for Zacks Rank on the 15th after DKS reports its earnings to see where their updated rank stands.
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