Â© Reuters. Sportsman’s Warehouse vs. Dick’s Sporting Goods: Which Retail Stock is Better to Buy?
The resumption of sports tournaments and other outdoor activities has resulted in strong sales for the sporting goods industry this year. As a result, we believe that sporting goods retailers Dick’s Sporting Goods (DKS) and Sportsman’s Warehouse (SPWH) are well positioned to take advantage of the months ahead. But which of these stocks is better to buy now? Read More DKS in Coraopolis, Pennsylvania offers sporting goods, hunting and fishing equipment, clothing, and shoes and accessories. The company also owns and operates Golf Galaxy, Field & Stream, and other specialized concept stores, e-commerce websites, and GameChanger, a youth sports mobile app. As of May 2021, it operated 730 company-owned stores. By comparison, in Midvale, Utah, SPWH has a wide range of products including clothing, camping, fishing, footwear, hunting and shooting, boating, optics, electronics, and other accessories. Additionally, the company’s stores provide archery services, reel line winding, cannon sighting and scope mounting, cleaning services, and the issuing of hunting and fishing licenses. As of March 31, 2021, the company operated 112 stores in 27 states.
Despite travel bans and social distancing restrictions, the sporting goods industry was resilient during the pandemic as people focused on individual sports and home training. However, rising vaccination rates and the lifting of travel restrictions have meant that major sports tournaments and other outdoor activities have to be postponed this year. As a result, brick-and-mortar and e-commerce sales saw tremendous growth in the first half of this year. The global sporting goods market is projected to grow 3.2% CAGR to reach $ 62.84 billion by 2027. Both DKS and SPWH should therefore benefit.
But while SPWH’s stock has lost 28.5% in price over the past six months, DKS is up 11.8%. DKS is a clear winner, up 93.6% over SPWH’s negative year-to-date returns. But which of these stocks is now the better choice? Let’s find out.
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