Dick’s is feeling the retail burn, shares tumble
CORAOPOLIS, Pa. (AP) — Dick’s Sporting Goods joined the banged up first-quarter retail roster, putting up sales numbers that sent shares hurtling 12 percent lower early Tuesday.
Sales rose 2.4 percent at established stores, a bad sign for industry analysts that had projected a 3.5 percent rise, according to FactSet.
Macy’s, Nordstrom and other traditional retail stores have been hammered during the quarter, feeling pressure from online rivals. Dick’s said Tuesday that it revamped its website earlier this year and sales there have improved.
Net income was $58.2 million, or 52 cents per share, in the three months ending April 29, compared with $56.9 million, or 50 cents per share, in the same quarter a year ago.
Earnings, adjusted for non-recurring costs, were 54 cents per share, matching Wall Street expectations, according to Zacks Investment Research.
Revenue rose 10 percent to $1.83 billion in the period, also meeting Street forecasts.
For the current quarter ending in August, Dick’s expects its per-share earnings to range from $1.02 to $1.07. Analysts surveyed by Zacks had forecast adjusted earnings per share of $1.
It expects full-year earnings in the range of $3.65 to $3.75 per share.
The quarterly earnings arrived four days after the company, based just outside of Pittsburgh, said it had made an accounting mistake in its fourth-quarter and full-year reports for the period that ended Jan. 28. Dick’s overstated $23.4 million in adjusted earnings before interest, tax, depreciation and amortization.
The company, based in Coraopolis, Pennsylvania, has more than 690 Dick’s stores, nearly 100 Golf Galaxy stores and about 30 Field & Stream stores.
Shares of Dick’s Sporting Goods Inc., which are already down 10 percent so far this year, fell $5.98 $41.89 at the opening bell.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on DKS at https://www.zacks.com/ap/DKS
Keywords: Dick’s Sporting Goods, Earnings Report