Dick's Sporting Goods Earnings Send Sports Stocks (NKE, UAA, HIBB) Lower

Shares of Dick's Sporting Goods (NYSE:DKS) plummeted on Tuesday morning after the retailer posted underwhelming quarterly same-store sales growth. The chain’s massive sell-off dragged sporting goods manufacturers and sportswear companies, including Nike (NYSE:NKE) and Under Armour (NYSE:UAA) , lower as well.

Dick’s sank to a new 52-week low on Tuesday morning, touching $27.92 a share after investors hammered the company’s stock. The brick-and-mortar sports chain carries almost every major sportswear company in the world, and its 0.1% same-store sales growth has some investors running scared.

Many other companies in the retail sector shared Dick’s fate, while some were able to avoid the downturn. But companies with big exposure inside of the sporting goods chain were not so lucky.

Sports Industry Dips

Shares of Adidas (DE:ADSGN) AG (OTC:ADDYY) and Puma SE (V:PUM) both fell marginally on Tuesday, with Puma experiencing the bigger drop-off. Callaway Golf (NYSE:ELY) and Columbia Sportswear (NASDAQ:COLM) slid by around 1.50%.

Nike (NKE) stock dipped 2% on Tuesday morning. Recently, the powerful sportswear company has made moves to sell more directly to consumers with its new Amazon (NASDAQ:AMZN) partnership. Nike has also tried to bolster and revamp its own online and mobile presence with the Nike app and the Nike SNKRS app, which hopes to create an easy shoe shopping experience.

Still, chains such as Dick’s provide Nike the invaluable service of allowing Nike consumers the ability to try on higher-end footwear and sneakers. Shares of Finish Line (NASDAQ:FINL) and Foot Locker (NYSE:FL) , which cater even more to the high-end sneaker lover, both plummeted over 4% on Tuesday on the back of Dick’s fall.

Under Armour (UAA) stock took one of the biggest hits in the sportswear world on Tuesday. Shares of the struggling company sank 4.41% and touched a new 52-week low of $17.81 a share. The company has large exposure in Dick’s and does not yet have the online and direct to consumer outlets to combat the retail drop off.

Sports Retailers Fall

Slow growth, missed Wall Street expectations, and a poor full-year outlook from one of the biggest sporting goods chains helped send shares of fellow sports-based brick-and-mortar companies down as well.

Dick’s retail peer Hibbett Sports’ (NASDAQ:HIBB) stock sank 11.65% to hit a new 52-week low of $12.23 a share. Shares of Big 5 Sporting Goods (NASDAQ:BGFV) also struck a 52-week low of $8.43 per share after falling over 5%. Outdoor sporting retailer Cabela’s (NYSE:CAB) stock fell 4.92%.

Lululemon (NASDAQ:LULU) stayed above the fray on Tuesday and actually saw marginal gains.

Bottom Line

The retail squeeze is seemingly in full effect as Amazon and e-commerce companies siphon more and more sales from traditional retail. Dick’s hit a 52-week low and the company’s shares have fallen almost 50% in the last year. If the retail chain does not begin to make possibly drastic changes to its game plan, it could eventually get knocked out of the retail world.

Nike, Under Armour, and other sportswear companies must also remain diligent in this ever growing digital world in order to remain highly competitive in the minds of investors.

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