Dick’s Sporting Goods Stock Takes a Hit Despite Better-Than-Expected Q4 Finish

Shares of Dick’s Sporting Goods are tumbling in Tuesday morning trading after the company reported a better-than-expected finish to the fourth-quarter but offered an outlook that may have missed the mark.

The Coraopolis, Pa.-based sporting goods seller’s stock was down nearly 7 percent to $36.45 as of 9:45 a.m. EST.

It posted earnings of $102.6 million, or $1.07 per diluted share, for the fourth quarter ended Feb. 2 — an 11.5 percent drop from the period ended Feb. 3, 2018. Adjusted per-share earnings panned out at $1.22 ahead of analysts’ expectations of $1.06.

Revenues fell 6.5 percent to $2.49 billion, with same-store sales also dipping 2.2 percent. Those figures were slightly better than forecasts of $2.48 billion and a decline of 3.3 percent, respectively.

Digital sales proved to be a bright spot for Dick’s, increasing 17 percent during the fourth quarter and representing approximately 23 percent of the top line.

“We are pleased with our fourth-quarter results. Our core business performed quite well, as our athletes have responded positively to many of our initiatives, resulting in comp sales gains across key categories and double-digit percentage increases in e-commerce and private brand sales,” said chairman and CEO Edward Stack. “We will continue to make significant investments in our business to meet our athletes’ ever-changing needs and grow our leadership position in the industry.”

For the full year, Dick’s saw earnings of $319.9 million, or $3.24 per diluted share, a gain of 8 percent from the prior year. Meanwhile, revenues decreased 1.8 percent to $8.44 billion and same-store sales slid 3.1 percent.

The company expects to return to positive same-store sales in the second quarter of 2019. Overall, however, full year 2019 consolidated same-store sales are projected to be flat to up 2 percent. Earnings per share are forecast in the range of $3.15 to $3.35.

“In 2019, we are focused on enhancing our athletes’ experience in our stores, improving our e-commerce fulfillment capabilities and elevating our technology talent and capabilities,” added Dick’s president Lauren Hobart. “This is an exciting time for our company as we remain focused on building the best omnichannel experience in sporting goods.”

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