dick sporting goods The stock reversed earlier losses after the sports-equipment and apparel company dropped its earnings expectations for the full year “to reflect the impact of escalating macroeconomic conditions.”
Dick’s (ticker: DKS) adjusted first-quarter earnings per share was $2.85, higher than the consensus call for $2.52, among analysts tracked by FactSet. Same-store sales, which measure revenue at stores that have been open for at least 12 months, declined 8.4%, against analysts’ expectations of an 11% decline.
First-quarter net sales of $2.7 billion exceeded analysts’ expectations for $2.63 billion.
Impressive quarterly results initially did nothing for the stock, which fell more than 18% to $58.24 in premarket trading Wednesday. However, on Wednesday, it gained more than 10% to $79.12. The stock fell 5.4 percent on Tuesday.
The forecast appears to be a concern. Dick’s said it expects adjusted earnings in the range of $9.15 to $11.70 per share for the full fiscal year ending January 2023, well below analysts’ expectations of $12.57 per share and management’s previous forecast. .
Same-store sales are expected to fall between 2% and 8%, a 2.5% drop in March and management’s guidance for the more pessimistic analysts predicted.
Despite the gloomy outlook, CEO Lauren Hobart said: “Over the past two years, we have demonstrated our ability to efficiently manage through pandemics and other challenges – and we continue to adapt quickly and through uncertain macroeconomic conditions. We believe in our continued ability to execute.”
Dix’s is far from the only retailer to cut its outlook. Big players from Walmart (WMT) to Best Buy (BBY) have warned that the macro backdrop has changed rapidly in recent months, from inflation to supply-chain disruptions and the war in Ukraine. Still, such a big move is a disappointment, especially for a company some investors hope will benefit from continued interest in outdoor recreation and organized sports post-pandemic.
Write to Karishma Vanjani at [email protected]
Credit: www.marketwatch.com /