Oppenheimer attended Outperform-rated Dick's Sporting Goods' (NYSE:DKS) analyst meeting on Wednesday, and analysts stated that the company's House of Sport concept looks compelling.
The House of Sport concept is DKS's newest, large format store located near Minneapolis, said the analysts. They also operate two others in Rochester, NY, and Knoxville, TN.
The analysts stated that the DKS CFO, Navdeep Gupta, explained that the company models the company's larger format units and regular stores with similar return profiles and "notes that thus far, House of Sport concept units are tracking ahead of expectations."
"So far, consumers of DKS appear to cross-shop the company's large format House of Sport concepts and its smaller units, with introductions of House of Sport stores not cannibalizing sales at existing, smaller units," wrote the analysts.
"Overall, we came away from our time with DKS very impressed with the look and feel of the company's House of Sport concept, noting expansive and well-showcased product selections and a very compelling, easy-to-navigate store layout," they added.