Dicks Sporting Goods Inc (DKS), Hibbett Sports, Inc. (HIBB): Sporting Goods Is a Great Business to Be In

The sporting goods business is enjoying the benefits of a number of tailwinds. Among them are a rebounding economy, strengthening housing market, and an overall love for all things sports. Sales of sportswear, including footwear and apparel, have been particularly strong. This was evidenced by the strong earnings just reported by NIKE, Inc. (NYSE:NKE). The following three companies have a strong retail presence and will continue to benefit as long as market tailwinds continue.

Shop for everything at Dick’s

Dicks Sporting Goods Inc (NYSE:DKS) is the largest U.S. sporting goods retailer, and operates approximately 520 Dicks Sporting Goods Inc (NYSE:DKS) in 44 states and 81 Golf Galaxy stores in 30 states. The company also operates an e-commerce site. The stores sell team sports, apparel, footwear, exercise gear and equipment, golf, and outdoor gear.

In the first quarter of this year, the company reported earnings of $0.48 per share compared to $0.45 per share last year. Net sales increased 4.1% to $1.3 billion, which grew as a result of new stores. Same-store sales decreased 3.2% at Dicks Sporting Goods Inc (NYSE:DKS) and decreased 11.8% at Golf Galaxy. This was due to a harsher winter this year compared to last year. E-commerce sales grew to comprise 5.8% of total revenue compared to 3.7% in 2012.

Looking forward, Dicks Sporting Goods Inc (NYSE:DKS) expects earnings for the second quarter to be between $0.75 and $0.77 per share compared to $0.65 last year. Same-store sales are forecast to grow by 2% to 3%. In total for 2013, the company plans to open 40 Dicks Sporting Goods Inc (NYSE:DKS), fully remodel 4 stores and partially remodel 75 stores. The new stores will have NIKE, Inc. (NYSE:NKE) and Under Armour Inc (NYSE:UA) stores located within the Dicks Sporting Goods Inc (NYSE:DKS) stores. The company will also open 1 new Golf Galaxy and relocate another.

The other segment for growth is the opening of its new outdoor concept stores. The new Field & Stream stores will offer everything for the hunter, fisherman and camping enthusiast. The plan is to open two stores this year, and the first will be in Pittsburgh. This segment is a prime area for growth, especially considering the strong demand for guns and ammunition.

The neighborhood sporting goods store