Dick’s Sporting Goods Earnings: Here’s Why Shares are Down Now
Dick’s Sporting Goods Inc. (NYSE:DKS) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.4%.
Dick’s Sporting Goods Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 6.67% to $0.48 in the quarter versus EPS of $0.45 in the year-earlier quarter.
Revenue: Rose 4.08% to $1.33 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Dick’s Sporting Goods Inc. reported adjusted EPS income of $0.48 per share. By that measure, the company met the mean analyst estimate of $0.48. It missed the average revenue estimate of $1.36 billion.
Quoting Management: “In the first quarter, we generated earnings in line with our original guidance, but were not pleased with our sales results, which came in below our expectations,” said Edward W. Stack, Chairman and CEO. “To drive sales and preserve margins in the near-term, we will work with our vendor partners, particularly in golf, to provide value offerings; we will aggressively execute our store remodel program, with approximately 75% of the identified stores expected to be completed by the end of the second quarter; and we will continue to tightly manage clearance inventory, which has declined meaningfully.”
Key Stats (on next page)…