Dick's Sporting Goods Stock Surges, Dollar Tree Falls

Dick's Sporting Goods on the Rise

Dick's Sporting Goods (NYSE: DKS) has seen a meteoric rise in stock price over the past year, up over 50%. This surge is largely due to the company's strong performance during the pandemic, as people turned to home fitness and outdoor recreation. Lockdowns meant that people needed equipment to keep up their fitness levels and Dick's was the place that many turned to.

Dick's has also benefited from the decline of its main competitor, Sports Authority, which filed for bankruptcy in 2016. This left Dick's with a dominant position in the sporting goods market, and it has been able to capitalize on this by increasing prices and expanding its product offerings.

Dollar Tree Suffers from Inflation

In contrast, Dollar Tree (NASDAQ: DLTR) has been struggling in recent months, with its stock price falling by over 20%. This decline is largely due to the company's exposure to inflation, as its low-priced items are particularly sensitive to rising costs.

Dollar Tree CEO Michael Witynski stated that the company would take action by raising prices, but customers may be reluctant to pay more.

Conclusion

Dick's Sporting Goods and Dollar Tree are two companies that have been impacted by the pandemic in very different ways. Dick's has benefited from the increased demand for sporting goods, while Dollar Tree has been hurt by inflation and supply chain disruptions. As the pandemic continues, it remains to be seen how these two companies will fare in the long term.