Dick’s Sporting Goods Cuts Earnings Guidance as Sales Drop
Dick’s Sporting Goods said first-quarter sales fell 7.5% from a year earlier.
Photo:
Joe Raedle/Getty Images
Dick’s Sporting Goods Inc.
DKS -4.97%
cut its earnings outlook for the year after posting a decline in first-quarter sales, the latest retailer projecting struggles as inflation pinches consumer wallets.
The sports equipment and apparel chain said same-store sales dropped 8.4% in the quarter while overall sales fell 7.5% from a year earlier. The company said it is now projecting same-store sales could fall as much as 8% this year and lowered its profit outlook.
Dick’s said the guidance cut reflects evolving macroeconomic conditions. Retailers across the sector have said that consumer demand waned in the first quarter without the spending boost from last year’s government stimulus. Inflation has curbed consumer spending and squeezed margins that are already under pressure from continuing supply-chain disruptions and rising shipping costs.
Dick’s new forecast calls for same-store sales to fall between 2% and 8% this year, compared with an earlier projection of being flat or down 4%.
Per-share earnings adjusted for certain items are expected to be between $9.15 and $11.70, compared with the company’s prior guidance of between $11.70 and $13.10.
Dick’s shares dropped 5.8% in morning trading, continuing a year-to-date decline that is familiar to other retailers suffering from a sharper-than-expected pullback in consumer spending. Even major retailers, including Target Corp. and
Walmart Inc.,
that posted higher first-quarter sales have been caught up in a major selloff of retail stocks as they face higher costs and consumers curbing higher margin discretionary purchases.
For the quarter ended April 30, Dick’s reported earnings of $260.6 million, or $2.47 a share, down from $361.8 million, or $3.41 a share, a year ago. Adjusted earnings were $2.85 a share, above Wall Street expectations of $2.52, according to FactSet.
Revenue came in at $2.7 billion, down from $2.9 billion a year earlier. Analysts polled by FactSet had been expecting $2.6 billion.
Write to Dean Seal at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Dick’s Sporting Goods said first-quarter sales fell 7.5% from a year earlier.
Photo:
Joe Raedle/Getty Images
Dick’s Sporting Goods Inc.
DKS -4.97%
cut its earnings outlook for the year after posting a decline in first-quarter sales, the latest retailer projecting struggles as inflation pinches consumer wallets.
The sports equipment and apparel chain said same-store sales dropped 8.4% in the quarter while overall sales fell 7.5% from a year earlier. The company said it is now projecting same-store sales could fall as much as 8% this year and lowered its profit outlook.
Dick’s said the guidance cut reflects evolving macroeconomic conditions. Retailers across the sector have said that consumer demand waned in the first quarter without the spending boost from last year’s government stimulus. Inflation has curbed consumer spending and squeezed margins that are already under pressure from continuing supply-chain disruptions and rising shipping costs.
Dick’s new forecast calls for same-store sales to fall between 2% and 8% this year, compared with an earlier projection of being flat or down 4%.
Per-share earnings adjusted for certain items are expected to be between $9.15 and $11.70, compared with the company’s prior guidance of between $11.70 and $13.10.
Dick’s shares dropped 5.8% in morning trading, continuing a year-to-date decline that is familiar to other retailers suffering from a sharper-than-expected pullback in consumer spending. Even major retailers, including Target Corp. and
Walmart Inc.,
that posted higher first-quarter sales have been caught up in a major selloff of retail stocks as they face higher costs and consumers curbing higher margin discretionary purchases.
For the quarter ended April 30, Dick’s reported earnings of $260.6 million, or $2.47 a share, down from $361.8 million, or $3.41 a share, a year ago. Adjusted earnings were $2.85 a share, above Wall Street expectations of $2.52, according to FactSet.
Revenue came in at $2.7 billion, down from $2.9 billion a year earlier. Analysts polled by FactSet had been expecting $2.6 billion.
Write to Dean Seal at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Denial of responsibility! Techno Blender is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.