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Dick's Sporting Goods Shares Tank on Weak Earnings, Other Sports Retailers Follow
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On Tuesday, shares of Dick’s Sporting Goods (DKS - Free Report) are plummeting, down over 13% to $41.21 per share in afternoon trading after the retailer reported disappointing first-quarter results. As a result, UBS downgraded Dick’s to ‘Hold’ from ‘Buy,’ while other companies in the sporting goods sector are falling as investors are more on edge than ever.
Dick’s reported earnings of 54 cents per share, coming in line with the Zacks Consensus Estimate and jumping 8% year-over-year. Revenues of $1.825 billion, however, fell short of our consensus estimate, while consolidated comps only grew 2.4%, lagging the company’s forecast of a 3% to 4% increase.
Dick’s reiterated its fiscal 2017 guidance, expecting adjusted earnings to range for $3.65 to $3.75 per share. Consolidated comps growth is now projected in the range of 1% to 3%, compares with 2% to 3% projected earlier. For the second-quarter of fiscal 2017, the company anticipates earnings per share to lie in the band of $1.02 to $1.07, with comps growth to range from 2% to 3%.
Other retailers in this sector are also hurting today. Sporting goods peers Hibbett Sports (HIBB - Free Report) , Big 5 Sporting Goods (BGFV - Free Report) , and Sportsman’s Warehouse Holdings (SPWH - Free Report) are all sliding, down 3.93%, 0.93%, and 5.23%, respectively, in afternoon trading. Even hunting, fishing, and camping retailer Cabela’s took a hit today, down about 0.60% in the same time frame.
Sports retailers haven’t been able to escape the wide net cast by Dick’s first-quarter earnings either. Giants like Under Armour (UAA - Free Report) and Nike (NKE - Free Report) have slipped 4.41% and 1.99% so far today, while Vista Outdoor (VSTO - Free Report) , Columbia Sportwear (COLM - Free Report) , Finish Line , and Foot Locker (FL - Free Report) are all down, too.
This sector response is similar to what happened when Macy’s (M - Free Report) M Quick QuoteM - Free Report) -Stumbles-After-Earnings-Its-Bringing-Other-Retailers-Down-With-It">reported their first-quarter earnings, and many apparel retailers stumbled along with the department store stalwart.
Currently, DKS carries a Zacks Rank #3 (Hold), with a VGM score of ‘A,’ though this is subject to change following its earnings announcement.
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Dick's Sporting Goods Shares Tank on Weak Earnings, Other Sports Retailers Follow
On Tuesday, shares of Dick’s Sporting Goods (DKS - Free Report) are plummeting, down over 13% to $41.21 per share in afternoon trading after the retailer reported disappointing first-quarter results. As a result, UBS downgraded Dick’s to ‘Hold’ from ‘Buy,’ while other companies in the sporting goods sector are falling as investors are more on edge than ever.
Dick’s reported earnings of 54 cents per share, coming in line with the Zacks Consensus Estimate and jumping 8% year-over-year. Revenues of $1.825 billion, however, fell short of our consensus estimate, while consolidated comps only grew 2.4%, lagging the company’s forecast of a 3% to 4% increase.
Dick’s reiterated its fiscal 2017 guidance, expecting adjusted earnings to range for $3.65 to $3.75 per share. Consolidated comps growth is now projected in the range of 1% to 3%, compares with 2% to 3% projected earlier. For the second-quarter of fiscal 2017, the company anticipates earnings per share to lie in the band of $1.02 to $1.07, with comps growth to range from 2% to 3%.
Other retailers in this sector are also hurting today. Sporting goods peers Hibbett Sports (HIBB - Free Report) , Big 5 Sporting Goods (BGFV - Free Report) , and Sportsman’s Warehouse Holdings (SPWH - Free Report) are all sliding, down 3.93%, 0.93%, and 5.23%, respectively, in afternoon trading. Even hunting, fishing, and camping retailer Cabela’s took a hit today, down about 0.60% in the same time frame.
Sports retailers haven’t been able to escape the wide net cast by Dick’s first-quarter earnings either. Giants like Under Armour (UAA - Free Report) and Nike (NKE - Free Report) have slipped 4.41% and 1.99% so far today, while Vista Outdoor (VSTO - Free Report) , Columbia Sportwear (COLM - Free Report) , Finish Line , and Foot Locker (FL - Free Report) are all down, too.
This sector response is similar to what happened when Macy’s (M - Free Report) M Quick QuoteM - Free Report) -Stumbles-After-Earnings-Its-Bringing-Other-Retailers-Down-With-It">reported their first-quarter earnings, and many apparel retailers stumbled along with the department store stalwart.
Currently, DKS carries a Zacks Rank #3 (Hold), with a VGM score of ‘A,’ though this is subject to change following its earnings announcement.
5 Trades That Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today, Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>