June's AI-picked stock updates now live. See what's new in Tech Titans, up 28.5% year to date.Unlock Stocks

Shares in Dick's Sporting Goods fall 5% after disappointing 1Q earnings

Published 05/19/2015, 06:16 PM
Updated 05/19/2015, 06:24 PM
Struggles with its Golf Galaxy brand led to a poor first quarter of earnings for Dick's
DKS
-

Investing.com -- Shares in Dick`s Sporting Goods Inc (NYSE:DKS) fell more than 5% on Tuesday, after the Fortune 500 sports equipment, apparel and retailer posted worse than expected earnings for its first quarter that ended in early-May.

During the first quarter of 2015, net earnings for the Pittsburgh-based company fell approximately 10% on a year-over-year basis to $63.3 million or 0.53 per share from 70 million or 0.57 per share over the same period last year. Dick's still increased revenues during the quarter from $1.439 billion to $1.565 billion, in line with analysts' forecasts of a $1.561 billion gain.

"We are pleased with our first quarter results as we generated earnings at the high end of our expectations, despite a slow start to the spring season," Dick's Sporting Goods CEO Edward W. Stack said in a statement. "I am confident in our full year outlook as we remain focused on growing our business through driving store productivity, adding new stores in new and under-penetrated markets, expanding and controlling our eCommerce business, and further developing our Field & Stream specialty concept."

While Dick's expanded same-store sales by 1.8%, the company was tamped down by a poor quarter from its Golf Galaxy brand which saw its same-store sales fall by 11% in the period. The division's struggles are "receiving more air time than it needs," Stack added. The company as a whole increased same-store sales by 1%, below forecasts of a 1.5% gain.

During the first quarter the company opened nine new Dick's Sporting Goods locations and an additional Field & Stream store. Last month, the company reiterated its full-year 2015 guidance and offered a 3-year diluted EPS CAGR guidance of approximately 12% to 16%.

Shares in Dick's Sporting Goods fell 2.86 points or 5.08% on Tuesday to 53.43. In early-April, shares reached a 52-week high at 58.98.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.