Dick’s Sporting Goods downgraded as Nike, Under Armour and Adidas increase direct-to-consumer sales

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Dick’s Sporting Goods Inc.












DKS, +0.99%










was downgraded Thursday to market perform from outperform at Cowen & Company on concerns that direct-to-consumer (DTC) sales at Nike Inc.












NKE, -0.96%










Under Armour Inc.












UAA, +1.25%










and Adidas AG












ADS, +0.37%










will eat into Dick’s revenue. Nike is 20% of Dick’s sales, Cowen analysts led by John Kernan wrote, and Under Armour is 12% of the retailer’s sales. Cowen estimates that Nike DTC sales in the U.S. will expand by about $3 billion by 2021, Under Armour will expand by $375 million for the period, and Adidas will grow by about €500 million. In addition, Amazon.com Inc.












AMZN, -0.92%










continues to gain sporting goods share. “Consensus estimates for ’18 assume the current environment improves dramatically despite ‘price war’ declaration and lower ASPs on Under Armour, Nike and Adidas apparel markdowns, merch margin pressure, shipping cost pressure,” analysts wrote. The FactSet consensus is for a 0.7% same-store sales decline. Dick’s shares are down 50% for the year so far while the S&P 500 index












SPX, -0.35%










up 9.2% for the period.

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