Dick’s Sporting Goods on Wednesday reported results for its fiscal first quarter that topped Wall Street’s expectations, as shoppers spent money on golf clubs, soccer gear and athletic apparel from brands like Nike and Adidas.
But Dick’s isn’t immune to sky-high inflation and ongoing supply chain challenges. The company cut its financial forecast for the full fiscal year.
Shares of the retailer fell more than 18% in premarket trade.
Dick’s now expects to earn between $9.15 and $11.70 per share, on an adjusted basis, this fiscal year, compared with a prior range of $11.70 to $13.10. Analysts had been looking for adjusted earnings per share of $12.56, according to Refinitiv estimates.
Dick’s is forecasting same-store sales to be down 8% to down 2%, versus prior expectations of down 4% to flat. Analysts were calling for a year-over-year decline of 2.5%, according to FactSet.
The company’s decision to lower its guidance comes after similar adjustments from Walmart, Target and Kohl’s, as these retailers cope with higher expenses that are eating into their earnings. Shares of apparel retailer Abercrombie & Fitch fell nearly 30% Tuesday after the company slashed its outlook for the year.
Dick’s President and Chief Executive Officer Lauren Hobart said in a press release that she’s confident the company will be able to “adapt quickly” amid uncertain macroeconomic conditions.
Here’s how Dick’s did in its fiscal first quarter compared with what Wall Street was anticipating, using Refinitiv estimates:
Earnings per share: $2.85 adjusted vs. $2.48 expectedRevenue: $2.7 billion vs. $2.59 billion expected
Dick’s reported net income for the three-month period ended April 30 of $260.6 million, or $2.47 per share, compared with net income of $361.8 million, or $3.41 a share, a year earlier. Excluding one-time items, the company earned $2.85 per share.
Sales fell about 8% to $2.7 billion from $2.92 billion a year earlier, but they were enough to top expectations.
Dick’s shares have fallen roughly 38% year to date, as of Tuesday’s market close.
This story is developing. Please check back for updates.