So what: Dicks Sporting Goods reported fourth quarter earnings and said quarterly revenue rose 3.7% to $2.2 billion, although net income fell from $155.5 million a year ago to $129.0 million, or $1.13 per share.
The bigger story long-term may be that competitor Sports Authority filed for bankruptcy in March and said it will close 140 stores. This eliminates a lot of competition for Dicks, and could allow the company to steal market share in the sporting goods market.
Now what: Fourth quarter results were actually below analysts' expectations slightly, but the market shrugged off the earnings miss, looking to the long-term instead. That's good for investors, because the loss of a big competitor will help drive more traffic to Dicks. The threat from online retail is real, but there's a lot of value in a local sporting goods store, and with shares now trading at 15 times earnings I think there's room for the stock to grow long-term.