Dick's Sporting Goods shares slide 9.5% as sales fall short of estimates

[Frank Cannon]

https://www.marketwatch.com/story/dicks-sporting-goods-shares-slide-95-as-sales-fall-short-of-estimates-2018-08-29

Dick's Sporting Goods Inc. shares DKS, -8.99% slid 9.5% in premarket trade Wednesday, after the retailer posted weaker-than-expected sales for the second quarter and offered below consensus same-store sales guidance for the full year. The company said it had net income of $119.4 million, or $1.20 a share, in the quarter, up from $112.4 million, or $1.03 a share, in the year-earlier period. Sales rose to $2.177 billion from $2.157 billion. Same-store sales fell 4%. The FactSet consensus was for EPS of $1.06, sales of $2.237 billion and a same-store sales decline of 0.6%. Chief Executive Edward Stack said sales were "impacted by the strategic decisions we made regarding the slow growth, low margin hunt and electronics businesses, which accounted for nearly half of our comp decline.' The company also experienced "significant declines" in sales of Under Armour UA, -3.78% products, as a result of their decision to expand distribution. Dick's raised its full-year EPS guidance to a range of $3.02 to $3.20 from a prior range of $2.92 to $3.12. But full-year same-store sales are expected to fall 3% to 4%. The FactSet consensus is for full-year EPS of $3.08 and for a same-store sales decline of 0.8%. Shares have gained 26.6% in 2018, while the S&P 500 SPX, +0.03% has gained 8.4%.

[Frank Cannon]

How's that gun policy working out for you morons?

[Wingnut]

How's that gun policy working out for you morons?

This has nothing to do with our corporate desiccation to alienate roughly 40% of their customer base... hunters and outdoors men.  And even though per store sales and profits at Bass Pro Shops and Cabela's are up sharply Dick's are soft  .

[dfwgator]

The moral of the story...Don’t be a Dick’s.

[Free Vulcan]

(Reuters) - Dick’s Sporting Goods (DKS.N) reported a bigger-than-expected drop in quarterly same-store sales on Wednesday and forecast further declines this year, hit by tighter gun controls and a drop in Under Armour sales.

Shares in the company fell as much as 10 percent after it posted a 1.9 percent drop in same-store sales, bigger than analysts’ average estimate of a 0.62 percent dip.

Dick’s was one of the first retailers to stop selling assault rifles and high-capacity magazines as well as bar the sale of guns to people under age 21 following a massacre at a Florida high school in February.

https://www.reuters.com/article/us-dicks-sporting-results/dicks-sporting-misses-same-store-sales-estimates-shares-drop-idUSKCN1LE1CQ

[GtHawk]

This has nothing to do with our corporate desiccation to alienate roughly 40% of their customer base... hunters and outdoors men.  And even though per store sales and profits at Bass Pro Shops and Cabela's are up sharply Dick's are soft  .

Those of us that hunt or just enjoy shooting targets.............or criminals, may be avoiding Dicks but I can tell you that when I go to my grandsons baseball games ans listen to parents and others there, most of them could care less about Dicks gun policies and only care about the deals they can get.

[Free Vulcan]

Threads merged.

[catfish1957]

Proof positive of what happens when corporations cave to liberal interests.

Now that there is blood in the water, just a matter of time until NOW and other like whacko groups  force them to change their corporate name to something gender neutral.

[Wingnut]

Those of us that hunt or just enjoy shooting targets.............or criminals, may be avoiding Dicks but I can tell you that when I go to my grandsons baseball games ans listen to parents and others there, most of them could care less about Dicks gun policies and only care about the deals they can get.

And that is the other thing.  Dick's has shitty deals.  Their online web store is a joke and in-store they double suck. Stocked with overpriced crap. 

[DCPatriot]

Isn't it common sense this decrease is the loss of sales of firearms and related equipment?  They surely expected this.

This is no different than Obama's quarterly GDP numbers that were perpetually 'revised' at a later date.  On page 23.

[IsailedawayfromFR]

Firearms and ammo are huge profit items.  They also tend to bring more customers into stores or shop online.

When they are absent, customers are too.

If revenues are off 9.5%, then profits are off even more.

Shareholders should send a strong rebuke to Dick's mgt.  Stock prices are plunging.

Interesting that main competitors are Academy Sports and Bass Pro Shop, both privately owned.

[thackney]

Firearms and ammo are huge profit items.  They also tend to bring more customers into stores or shop online.

Not to mention, those customers buy more than just firearms and ammo.  If I am already in Academy Sports for those purchases, I'm not going to Dicks to buy fishing lures, camping gear and running shoes.