Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

Dick’s Sporting Goods Shares Fall As Forecast Misses The Mark

Tuesday, November 15, 2016 7:36
% of readers think this story is Fact. Add your two cents.

Dicks Sporting Goods Inc (NYSE:DKS) early Tuesday posted better than expected third quarter earnings results, but offered a weak fourth quarter outlook that sent its shares lower in morning trading.

The Coraopolis, PA-based company reported Q3 EPS of $0.48, beating Wall Street’s $0.42 estimate by six cents. Revenues rose 10.2% from last year to $1.81 billion, also topping analysts’ view of $1.77 billion.

Consolidated same store sales rose 5.2% in the latest quarter, which was much better than the company’s guidance for a 2% to 3% increase. Same store sales for DICK’S Sporting Goods gained 5.5%, while Golf Galaxy fell 3.3%. Third quarter 2015 consolidated same store sales increased 0.4%, so this year saw a substantial improvement on that front.

Dick’s guidance was worse than expected, however. DKS forecast Q4 EPS of $1.15 to $1.27, which could badly miss Wall Street’s $1.32 estimate. It also sees same-store sales growth of 3% to 6% in the current period, which straddles estimates of 4.2%.

Online sales are growing to represent a larger portion of the company’s revenues. eCommerce penetration for the third quarter of 2016 was 9.6% of total net sales, compared to 8.0% during Q3 last year.

Dick’s said it will retain 22 of the 31 acquired The Sports Authority leases and convert those to Dick’s Sporting Goods stores. “In addition, the Company will leverage the TSA customer information it purchased in its marketing during the fourth quarter of 2016,” it noted.

DKS also said its Golfsmith bankruptcy acquisition will be accretive to its fiscal 2017 earnings, with up to 500 former Golfsmith employees being retained.

The company commented via press release:

“We are very pleased with our third quarter results, which were driven by a 5.2% comp sales increase and gross margin expansion. We realized meaningful market share gains and saw growth across each of our three primary categories of hardlines, apparel and footwear, while maintaining tight control of our inventory.”

“Looking ahead, we believe our assortment and marketing will help us to continue to capture displaced market share this holiday.”

Dick’s shares fell $2.14 (-3.51%) to $58.75 in premarket trading Tuesday. Prior to today’s report, DKS had surged 72.25% year-to-date.


You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global

Top Alternative




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.