Dicks Sporting Goods stock drops as fourth quarter sales disappoint

Dicks Sporting Goods Inc (NYSE:DKS) shares were down in premarket after the retailer revealed weaker same-store sales.

At US$2.66bn revenue for the fourth quarter fell short of market expectations, consensus was set at US$2.74bn. Same store sales were down 2% for three months, ended February 3, indicating a weaker holiday period.

It reported US$116mln of net income or US$1.11 per share, up from US$90.2mln and 81 cents respectively for the comparative period of last year. After adjusting for one-time items, Dick’s earned US$1.22 per share which was slightly better than market forecasts for US$1.20.

Edward Stack, Dick’s chief executive, described it as a “competitive environment” whilst saying the performance was in line with the company’s own expectations.

“As expected, margins remained under pressure, however the decline was less than we anticipated,” Stack said.

“During 2017, we made significant progress on key priorities as we grew both our online and private brand businesses to over one billion dollars in sales.”

Looking ahead, Stack said the company sees “considerable opportunity to deliver a stronger performance”.

Dick’s was down US$1.65 or 5.07% changing hands at US$30.91.

Story by ProactiveInvestors