Rapala as an investment

Dicks Sporting Goods released its Q2 results for the 13 weeks ending August 2. Dicks is the largest sporting goods retailer in the United States, also selling a wide range of Rapala products.

The report is good; comparable sales grew by 5 percent from the previous year, and earnings remained flat year-over-year, while analysts expected earnings to decline quite significantly. For example, the MarketWatch website gave analysts’ average estimate as $3.89 per share, while the actual result was $4.37 per share. Revenue also exceeded analysts’ forecasts. A positive sign for the US market, in my opinion.

The full-year revenue forecast was raised from 1-3 percent growth to 2-3.5 percent growth, and the earnings per share forecast was raised from $13.8 - $14.4 to $13.9 - $14.5.

Link to the report:

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