dick sporting goods co. (DKS) – Get Dick’s Sporting Goods, Inc. Report Shares in the largest U.S. sporting goods retailer tumbled on Wednesday after the company warned that “changing macroeconomic conditions” would slash near-term sales and full-year profit forecasts.
Dick reported adjusted earnings of $2.85 a share for the three months ended April, down 24.8% from a year earlier and beating Wall Street’s forecast by 38 cents. Group revenue also fell, down 7.5% from last year’s pandemic rebound to around $2.7 billion, but the figure also beat analysts’ estimates of $2.58 billion.
However, same-store sales were down 8.4% from last year, and Dick’s said the trend is likely to continue, with sales expected to be in the range of -8% to -2% in 2022. Dix also lowered its earnings forecast to $9.15 to $11.70 a share, down from a previous forecast of $11.70 to $13.10 a share.
“We are pleased with our first quarter results as our teams continue to act nimbly and execute well in a highly dynamic environment,” said CEO Lauren Hobart. “Over the past two years, we’ve demonstrated our ability to deftly navigate the pandemic and other challenges — and we’re confident in our ability to continue to adapt and execute rapidly amid uncertain macroeconomic conditions.”
“Dick has a unique and strong position in the market, and we remain confident in our strategy and ability to deliver long-term sales and profitable growth,” she added.
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Dick’s stock fell 14% in premarket trading immediately after the earnings release, indicating an opening price of $61.30 a share.
nike (NKE) – Get NIKE, Inc. Class B Reports Shares were also affected, down 2.35% as investors slashed estimates for footwear sales as part of a marketing and distribution partnership the group signed with Dick’s last year.
Inflation, input cost pressures and supply chain disruptions took their toll on U.S. retail this quarter, culminating in a disappointing first-quarter earnings and outlook for giant Walmart (WMT) – Get the Walmart Company ReportTarget (TGT) – Get Target Company Report and Amazon (AMZN) – Get Amazon.com, Inc. Reports This month.
The S&P 500 retail group has fallen about 24% so far this quarter, its worst performance since 1990, as investors expect the Fed’s rate-based inflation fight and the highest nominal domestic natural gas prices on record to continue to bring more pain. Compress household budgets and discretionary spending.
U.S. retail sales growth stabilized in April, Commerce Department data showed earlier this week, as record-high oil prices and soaring inflation failed to deter spending in the world’s largest economy.
Inflationary pressures remained severe, however, and even as the Commerce Department’s headline figure for April eased to 8.1% from a 40-year high, so-called core inflation, which strips out volatility such as food and energy prices, rose 6.2%, near its highest level since February 1991 level.