Dick's Sporting Goods (NYSE:DKS) announced Tuesday its second quarter profits increased 43%, prompting the company to boost its full year earnings forecast, but shares still fell as its top line guidance remained conservative.
For the three months ending July 30, the sporting goods retailer posted net income of $73.8 million, or $0.59 per share, compared to $51.5 million, or $0.43 per share, a year ago.
Adjusted for an $8.7 million gain on the sale of certain investments, profits for the quarter were $65.1 million, or $0.52 per share.
Revenues rose 7% to $1.31 billion. Analysts had expected earnings of $0.50 per share, on $1.32 billion in revenues.
"In the second quarter, we delivered profitable growth that exceeded our earnings projections while continuing to strengthen our balance sheet," said CEO Edward W. Stack.
Indeed, Dick's opted to increase its full year outlook to a range of $1.94 to $1.96 per share, up from its May guidance of $1.91 to $1.93 per share. Same store sales, or those of locations open at least one year, are expected to rise between 1% and 2%.
Analysts are anticipating full year profits of $1.94 per share.
"While some may view our top line guidance as being conservative, we believe that the current instability in many global markets and the uncertainty in the domestic macro economic environment, warrant a cautious outlook," Stack added.
Shares fell 1.85% on the New York Stock Exchange, trading at $32.31 each as of 11:34 am EDT.
During the quarter, the company's same store grew 2.5%, consisting of a 1.7% hike at Dick's Sporting Goods stores, a 4% increase at the company's Golf Galaxy stores, and a 31.9% spike in its e-commerce segment.
"We also made marked progress in developing all of our growth drivers by adding productive, profitable stores; building our e-commerce business; and expanding our overall margin rates," Stack continued.
The Pittsburgh, Pennsylvania-based company operated a total of 455 Dick's Sporting Goods stores in 42 U.S. states, and 81 Golf Galaxy locations in 30 states at the end of the quarter.