Why Dicks Sporting Goods Inc (DKS) Stock Is Dropping Today

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Dicks Sporting Goods Inc (NYSE:DKS) posted strong financial results Tuesday, but the company’s earnings were weaker than the previous year.

Why Dicks Sporting Goods Inc (DKS) Stock Is Dropping TodayThe retailer unveiled that it earned $90.2 million, or 81 cents per share over its holiday quarter, falling from the $1.13 per share it earned in the year-ago quarter. Wall Street was calling for adjusted earnings of $1.30 per share, and Dicks beat this by earning $1.32 per share on an adjusted basis.

The athletic goods store reported revenue that was in line with analysts’ projections at $2.48 billion, marking a 10.2% increase compared to the year-ago period. Same-store sales experienced a 5% surge on a consolidated basis compared to the fourth quarter of 2015.

Full-year earnings amounted to $287.4 million, or $2.56 per share, missing the fiscal 2015 totals when the company revealed earnings of $330.4 million, or $2.83 per share.

“In 2017, we will continue to be aggressive and evolve our business,” said Edward W. Stack the company’s CEO. He added that Dicks Sporting Goods will use new strategies that will result in a more refined selection of offerings for its customers.

 

Earnings for the first quarter are expected to be between 48 cents and 53 cents per share, according to the company’s management.

DKS stock fell 8.5% Tuesday. The stock has had a rocky beginning to the year, marked by plenty of rises and falls, ultimately resulting in a 9.4% drop.


Article printed from InvestorPlace Media, https://investorplace.com/2017/03/dicks-sporting-goods-inc-dks/.

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