PITTSBURGH (AP) -- Dick's Sporting Goods posted a 57 percent jump in second-quarter net income, but mostly because of a huge charge last year. Shares slumped 4 percent in premarket trading as the retailer fell short of Wall Street expectations.
Chairman and CEO Edward Stack said inclement weather reduced traffic and hurt sales.
For the period ended Aug. 3, the retailer earned $84.2 million, or 67 cents per share. That's up from $53.7 million, or 43 cents per share, in the prior-year period.
The company last year recorded a $32.4 million impairment charge tied to an investment in JJB Sports.
Excluding an asset impairment charge in the current quarter, earnings were 71 cents per share, three cents shy of Wall Street projections and below the 75 cents 77 cents that Dick's had forecast.
Adjusted results were 65 cents per share a year earlier.
Shares fell $2.17 to $48.42 before the opening bell.
Revenue climbed 6 percent to $1.53 billion, but that also fell short of analyst projections of $1.57 billion.
Revenue at stores open at least a year, a key gauge of a retailer's health, dipped 0.4 percent. Dick's said that the figure was adjusted due to the extra week in the year-ago period. The company previously forecast the metric would be up about 2 percent to 3 percent. Comparable-store sales slumped 6.1 percent at Golf Galaxy.
Dick's said its unadjusted same-store revenue rose 1.2 percent, still below its outlook for a 3.5 percent to 4.5 percent rise. The performance was weighed down by a 7.2 percent decline at Golf Galaxy.
Dick's now foresees full-year adjusted earnings between $2.60 and $2.65 per share. Its prior guidance was for $2.84 to $2.86 per share. Stack said the revised outlook accounts for lower sales expectations for the year's second half. He added that the Pittsburgh company will boost its advertising efforts in an attempt to lure shoppers into stores.
Analysts had been projecting full-year earnings of $2.83 per share.
For the third quarter, the retailer predicts earnings of about 37 to 39 cents per share and anticipates fourth-quarter earnings of approximately $1.04 to $1.07 per share.
Dick's Sporting Goods Inc. operates 527 stores in 44 states, in addition to 81 Golf Galaxy stores in 30 states.