Overheard on Wall Street: Dicks, Puma, Fila, Under Armour

Classic Hip-Hop Sneaker Styles
Puma sneakers were the go-to shoe of legendary Queens, N.Y. rapper MC Shan, among many others.
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What’s been on Wall Street’s radar this week? FN brings you the business stories you need to know.

 

Dicks Sporting Goods

Susquehanna Financial Group analyst Christopher Svezia upped his rating for Dicks this week due to —among other considerations —“a low bar and achievable Q1 [comparable store sales] and earnings.”

In early March, Dicks posted record earnings for Q4, ended Jan. 31, 2015, that beat Wall Street and company estimates. The firm has been forging ahead with a series of growth initiatives, and its stock hit a 52-week high of $57.86 on March 18.

“We upgrade DKS to positive from neutral and raise our price target to $68 … Our thesis is based on several factors, including … stable to improved pricing/margins at golf; momentum in higher-margin growth categories; a likely favorable analyst day on April 14; and potential for meaningful earnings accretion in FY17,” Svezia wrote in an April 2 note.

Puma

This week, Puma announced a new, comprehensive partnership with the Italian Football Federation (FIGC), making the sportswear brand FIGC’s lead partner into the next decade. Through the agreement, Puma has “extended and increased its marketing rights as well as [retained] the exclusive master license to actively manage the entire global licensing portfolio of FIGC assets,” the company said in a statement.

Puma will also continue as the official technical supplier for all associated FIGC teams. The partnership dates back more than 10 years.

Fila

Fila Korea posted financial documents on March 31 stating that Fila USA’s revenues were up 29.2 percent in 2014, to $279.2 million, compared with sales of $216.2 million in 2013 and $158.8 million in 2012.

The company said Fila USA has shown improvement in both sales and profit since its return to profitability in 2010.

Under Armour

Under Armour has been trying to position itself globally for several years, with international sales accounting for just 9 percent of the company’s total revenues in 2014. But even with currency shifts continuing to be a major concern for many U.S. companies, analysts say that Under Armour is beginning to gain traction in Europe.

In a report distributed on March 31, Citi Research analyst Kate McShane said her Q1 ’15 Europe Survey showed strong promise for the brand.

“Our survey identified Under Armour as the [number] 2-selling brand in Europe, behind Nike, in Q1, putting it just ahead of Adidas on its home turf,” McShane said in the report. “63 percent of retailers believe [Under Armour] is taking market share.”