Dick’s Sporting Goods tops Street; cuts outlook amid ‘macroeconomic conditions’

Dick's Sporting Goods Inc. reported fiscal first-quarter results that beat expectations but cut its full-year financial outlook, citing "uncertain macroeconomic conditions." 

The decision by the nation’s largest sporting goods retailer to lower its forecast comes on the heels of similar moves by Walmart, Target, Abercrombie & Fitch, and Kohl’s as higher costs cut into earnings.

Dick’s reported that its net income fell to $260.6 million, or $2.47 a share, for the quarter ended April 30, from $361.8 million, or $3.41 a share, in the year-ago period. Adjusted earnings per share of $2.85 topped analysts’ estimates of $2.52 per share.

Sales fell 7.5% to $2.70 billion, ahead of estimates of $2.63 billion. Same-store sales were down 8.4%.

"We are pleased with our first-quarter results as our team continued to move with agility and execute well in a highly dynamic environment,” said president and CEO Lauren Hobart. “Over the past two years, we have demonstrated our ability to adeptly manage through the pandemic and other challenges - and we are confident in our continued ability to adapt quickly and execute through uncertain macroeconomic conditions. Dick’s has a unique and powerful position in the marketplace, and we remain confident in our strategies and our ability to deliver long-term sales and earnings growth."

For fiscal 2022, the company reduced its earnings per share guidance range to $9.15 to $11.70 from $11.70 to $13.10. It also slashed its same-store sales growth outlook to negative 8% to negative 2% from negative 4% to flat.