Sector Snap: Sporting goods retailers
NEW YORK (AP) — Shares of a pair of sporting goods retailers climbed Monday as Dick's Sporting Goods Inc. raised its fourth-quarter and full-year earnings forecasts and an analyst predicted solid fourth-quarter results for Cabela's.
Dick's now foresees fourth-quarter earnings between $1.10 per share and $1.11 per share. Its prior outlook was for $1.04 per share to $1.07 per share.
Analysts polled by FactSet expect $1.06 per share.
For 2013, the chain now anticipates earnings between $2.68 per share and $2.69 per share, up from its previous guidance of $2.62 per share to $2.65 per share. Wall Street is calling for $2.65 per share.
Dick's stock gained $1.48, or 2.9 percent, to $52.58 in midday trading. Its shares are up more than 7 percent for the past year.
Looking at Cabela's Inc., analyst Mark Miller of William Blair said in a client note that the cold winter weather may help the company offset a tough year-ago comparison that included strong sales of firearms and ammunition.
In the prior-year period consumer demand for firearms surged on worries about the possibilities of increased regulation or bans of certain kinds of weapons in the wake of the December 2012 slayings of 20 first-graders and six adult staffers at the Sandy Hook Elementary School in Newtown, Conn.
Aside from firearms and ammunition, Cabela's sells footwear, clothing and gear for hunting, fishing and outdoor sports.
Miller said Cabela's seasonal clothing seems to have sold well in the fourth quarter.
The company is expected to report its quarterly results on Thursday.
Shares of Cabela's added $1.25 to $70.76 in midday trading. Its shares are up 42 percent over the past year.