Dick’s Sporting Items inventory plummets after lowered full-year outlook overshadows earnings beat

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Shares in Dick’s Sporting Goods Inc. DKS, +9.69%, plunged 17.7% in premarket trading on Wednesday to a 16-month low after the sporting goods and apparel retailer reported results for the fiscal first quarter that beat expectations but lowered its full-year outlook. citing “evolving macroeconomic conditions”. Net income for the quarter ended April 30 fell to $260.6 million, or $2.47 per share, from $361.8 million, or $3.41 per share, in the year-ago period. Excluding special items, adjusted earnings per share of $2.85 were above the FactSet consensus of $2.52. Sales fell 7.5% to $2.70 billion, but beat the FactSet consensus of $2.63 billion as an 8.4% drop in same-store sales beat expectations for a decline of 11.0%. For fiscal 2022, the company lowered its adjusted EPS guidance to $9.15 to $11.70 from $13.10 to $11.70 and lowered its guidance for same-business revenue growth to negative from negative 4% 8% to minus 2%. The stock is down 38.1% year-to-date through Tuesday, while the SPDR S&P Retail ETF XRT, +6.88%, is down 34.5% and the S&P 500 SPX, +0.95%, is down 17.3% .