Dick's Sporting Goods has a brutal quarter, shares crash
(The Dick's Sporting Goods store in Broomfield, Colorado.Reuters/Rick Wilking)
Dick's Sporting Goods shares plunged 19% premarket on Tuesday after the company reported second-quarter profits and sales that were weaker than analysts had expected.
The retailer also cut its guidance for full-year earnings amid what it described as "a challenging retail environment." Brick-and-mortar retailers are closing thousands of stores as more people choose to shop online.
Dick's was expected to gain some of the market share given up by Sports Authority, which filed for bankruptcy last year. Dick's won an auction bid for Sports Authority's intellectual property and brand name.
Here are Dick's key numbers, with estimates via Bloomberg:
Adjusted earnings per share: $0.96 ($1 expected)
Net sales $2.16 billion ($2.16 billion expected)
Comparable store sales (at locations open for at least one year): 0.1% (1.8% expected)
Full-year adjusted EPS forecast: $2.80-$3 (saw $3.65-$3.75 prior)
Dick's also cut its full-year comparable-store sales outlook and now sees them in the flat-to-negative-single-digit range. It expects to open 43 new stores this year and relocate approximately six.
Dick's shares have fallen 34% this year.
(Markets Insider)
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