Dick’s Misses Estimates, Lowers Guidance

Dick's Misses Estimates, Lowers Guidance
A Dick's Sporting Goods location

Dick’s Sporting Goods Inc. is hunkering down for some harsh weather.
 
The Pittsburgh-based retailer said cool temperatures resulted in slower traffic in stores and lower-than-expected same-store sales. As a result, second-quarter results came in below its previously issued guidance and the company lowered its outlook for the full year.
 
For the three months ended Aug. 3, the firm reporting earnings of $84.2 million, or 67 cents a diluted share, compared with $53.7 million, or 43 cents, for the same period in 2012. Net sales during the quarter were $1.53 billion, up from $1.44 billion reported for the year-ago quarter.
 
Excluding one-time charges, the sporting-goods chain posted earnings of 71 cents, versus 65 cents a year ago, but below market projections.
 
Analysts polled by Yahoo Finance had expected earnings of 74 cents on sales of $1.57 billion.
 
The company revised its full-year guidance and now predicts earnings of $2.60. Previously, the firm had anticipated a profit of $2.65 cents.
 
Still, Dick’s Chairman and CEO Edward Stack said he is confident in the strength of the retail chain. “The current challenges we are facing are short term in nature and we are actively pursuing strategies to address them,” he said in a statement. “This does not change our view of the profitable long-term growth opportunities for our business.”