Dick’s Sporting Goods (NYSE:DKS) on Wednesday reported results for its fiscal first quarter that topped Wall Street’s expectations, as shoppers spent money on golf clubs, soccer gear and athletic apparel from brands like Nike and Adidas.
But Dick’s isn’t immune to sky-high inflation and ongoing supply chain challenges. The company cut its financial forecast for the full fiscal year.
Dick’s now expects to earn between $9.15 and $11.70 per share, on an adjusted basis, this fiscal year, compared with a prior range of $11.70 to $13.10. Analysts had been looking for adjusted earnings per share of $12.56, according to Refinitiv estimates.
Dick’s is forecasting same-store sales to be down 8% to down 2%, versus prior expectations of down 4% to flat. Analysts were calling for a year-over-year decline of 2.5%.
Dick’s CEO Lauren Hobart said in a press release that she’s confident the company will be able to “adapt quickly” amid uncertain macroeconomic conditions.
Dick’s reported net income for the three-month period ended April 30 of $260.6 million, or $2.47 per share, compared with net income of $361.8 million, or $3.41 a share, a year earlier. Excluding one-time items, the company earned $2.85 per share.
Sales fell about 8% to $2.7 billion from $2.92 billion a year earlier, but they were enough to top expectations.
Dick’s shares have fallen roughly 38% year to date, as of Tuesday’s market close.
DKS shares faltered $6.84, or 9.6%, to $64.40.
