Dick’s Sporting Goods Q2 sales miss; blames Under Armour
Dick's Sporting Goods Inc. shares slid 9.5% in premarket trade Wednesday, after the retailer posted weaker-than-expected sales for the second quarter and offered below consensus same-store sales guidance for the full year.
Net income of $119.4 million, or $1.20 a share, in the quarter ended Aug.4, up from $112.4 million, or $1.03 a share, in the year-ago period. Adjusted earnings were: $1.20 a share. Analysts has expected earnings of $1.06 a share.
Sales rose to $2.18 billion from $2.16 billion. Analysts had expected sales of $2.24 billion. Online sales increased 12%. Same-store sales fell 4%, compared to estimates of a 0.6% decline.
“We delivered double digit growth in e-commerce, private brands, and athletic apparel excluding Under Armour, however, as expected, sales were impacted by the strategic decisions we made regarding the slow growth, low margin hunt and electronics businesses, which accounted for nearly half of our comp decline,” said Edward Stack, chairman and CEO.
Stack added the chain experienced significant declines in Under Armour sales “as a result of their decision to expand distribution.”
“We are very confident our sales trajectory will improve next year as these headwinds are expected to subside,” Stack said.
Dick's raised its full-year EPS guidance to a range of $3.02 to $3.20 from a prior range of $2.92 to $3.12. But full-year same-store sales are expected to fall 3% to 4%. Analysts were looking for full-year earnings per share of $3.08 and for a same-store sales decline of 0.8%. Shares have gained 26.6% in 2018, while the S&P 500 has gained 8.4%.
Net income of $119.4 million, or $1.20 a share, in the quarter ended Aug.4, up from $112.4 million, or $1.03 a share, in the year-ago period. Adjusted earnings were: $1.20 a share. Analysts has expected earnings of $1.06 a share.
Sales rose to $2.18 billion from $2.16 billion. Analysts had expected sales of $2.24 billion. Online sales increased 12%. Same-store sales fell 4%, compared to estimates of a 0.6% decline.
“We delivered double digit growth in e-commerce, private brands, and athletic apparel excluding Under Armour, however, as expected, sales were impacted by the strategic decisions we made regarding the slow growth, low margin hunt and electronics businesses, which accounted for nearly half of our comp decline,” said Edward Stack, chairman and CEO.
Stack added the chain experienced significant declines in Under Armour sales “as a result of their decision to expand distribution.”
“We are very confident our sales trajectory will improve next year as these headwinds are expected to subside,” Stack said.
Dick's raised its full-year EPS guidance to a range of $3.02 to $3.20 from a prior range of $2.92 to $3.12. But full-year same-store sales are expected to fall 3% to 4%. Analysts were looking for full-year earnings per share of $3.08 and for a same-store sales decline of 0.8%. Shares have gained 26.6% in 2018, while the S&P 500 has gained 8.4%.