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Dick's Sporting Goods stock drops as fourth quarter sales disappoint

Chief executive Edward Stack described a “competitive environment” but said the performance was in line with the company’s own expectations
Dicks sporting goods store
Dick’s was down 5% in premarket deals

Dick's Sporting Goods Inc (NYSE:DKS) shares were down in pre-market after the retailer revealed weaker same-store sales.

At US$2.66bn, revenue for the fourth quarter fell short of market expectations, consensus was set at US$2.74bn. Same-store sales were down 2% for three months, ended February 3, indicating a weaker holiday period.

READ: Barclays has doubts over Dick’s ability to tap into lucrative ‘athleisure’ trend

It reported US$116mln of net income or US$1.11 per share, up from US$90.2mln and 81 US cents respectively for the comparative period of last year. After adjusting for one-time items, Dick’s earned US$1.22 per share which was slightly better than market forecast for US$1.20.

Edward Stack, Dick’s chief executive, described it as a “competitive environment” whilst saying the performance was in line with the company’s own expectations.

“As expected, margins remained under pressure, however the decline was less than we anticipated," Stack said.

“During 2017, we made significant progress on key priorities as we grew both our online and private brand businesses to over one billion dollars in sales.”

Looking ahead, Stack said the company sees “considerable opportunity to deliver a stronger performance”.

Dick’s was down US$1.65 or 5.07% changing hands at US$30.91.

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Article
March 07 2017
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