DKS Stock: 14 Reasons Why Dick’s Sporting Goods Investors Are Taking an L Today

Dick’s Sporting Goods (NYSE:DKS) stock isn’t doing so hot on Tuesday following the release of its earnings report for the third quarter of 2021.

An image of a Dick's Sporting Goods retail location representing DKS Stock.

Source: Jonathan Weiss /

Let’s jump into that earnings report below to see why holders of DKS stock are disappointed today!

  • Let’s get the basics out of the way first, which includes adjusted earnings per share of $3.19 on revenue of $2.75 billion.
  • Both of these easily beat out Wall Street’s estimates of $1.97 per share and revenue of $2.5 billion.
  • The company’s adjusted EPS also represents a 59% increase over the $2.01 reported during the same time last year.
  • Its revenue is also sitting 13.9% higher than the $2.41 billion reported in the third quarter of 2020.
  • All of that sounds like great news, so why are investors unhappy with DKS stock today.
  • It has to do with slowing revenue growth.
  • Sure, that 13.9% revenue increase sounds like a win, until you compare it to the company’s 40% revenue increase from Q3 2019 to Q3 2020.
  • Consolidated same-store sales show a similar slowing growth with an increase of 12.2% year-over-year for Q3 2021.
  • Yet again, that’s doesn’t match up to the retailer’s consolidated same-store sales growth of 23.2% from Q3 2019 to Q3 2020.
  • The slowing revenue growth at Dick’s Sporting Goods likely has some investors worried that the company is getting close to stagnation.
  • We’ll have to wait and see how DKS performs in its next few earnings report to see if that’s the case.
  • Either way, today’s news brings heavy trading to DKS stock.
  • This has some 4.7 million shares moving as of this writing.
  • That’s above the company’s daily average trading volume of 2.4 million shares.

DKS stock is down 9.6% as of Tuesday afternoon.

There’s more stock news to take a look at below!

We’ve got the latest stock news that traders need to know about for Tuesday. A few stories to consider checking out include Petros Pharmaceuticals (NASDAQ:PTPI) stock jumping, Dollar Tree (NASDAQ:DLTR) increasing prices, as well as Pasithea Therapeutics (NASDAQ:KTTA) getting a boost. You can learn all about these matters at the following links!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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