Shares of Dick’s Sporting Goods (DKS) tumbled about 15% in pre-market trading on Tuesday after DKS reported lower-than-expected first-quarter sales and profits.
DKS said it earned $70 million during the quarter, up 8% year-over-year. Adjusted EPS came in at 50 cents, higher than 48 cents in the prior quarter, but falling short of the 51 cents to 53 cents that DKS had previously predicted, the Wall Street Journal noted.
Quarterly sales of $1.44 billion, up 7.6% from the prior-year period, also missed the $1.46 billion that analysts had estimated. Overall same-stores sales rose just 1.5% compared the range of between 3% and 4% that DKS had previously projected. Same-store sales at Golf Galaxy plunged 10% during the quarter, offsetting a 2.3% rise at Dick’s Sporting Goods stores. CEO Edward W. Stack noted that hunting goods sales were “even weaker than expected” during the quarter.
DKS lowered its profit outlook for the year. In March, DKS estimated full-year earnings to fall between $3.03 and $3.08 per share. Now, it calculates full-year profits of between $2.70 and $2.85 a share.
For the current fiscal quarter, DKS expects a profit of between 62 cents and 67 cents. That is well below the 82 cents that Wall Street is looking for.
On Monday, Dicks Sporting Goods stock closed at $53.16 per share.
More Stocks to Watch: