Dicks Sporting Goods Misses Q3 Expectations, Shares Tumble

Shares of Dicks Sporting Goods Inc DKS dipped around 17 percent in pre-market trading after the company reported weaker-than-expected earnings for the third quarter on Tuesday. The Coraopolis, Pennsylvania-based company posted quarterly net income of $47.2 million, or $0.41 per share, compared to $49.2 million, or $0.41 per share, in the year-ago quarter. Excluding non-recurring items, the company's adjusted earnings came in at $0.45 per share. Its revenue climbed 7.6 percent year-over-year to $1.64 billion. However, analysts were expecting earnings of $0.47 per share on revenue of $1.64 billion. The average estimate among 52 Estimize users was for earnings of $0.46 per share and revenue of $1.66 billion. Its total same store sales rose 0.4 percent for the quarter. Same store sales for DICK'S Sporting Goods gained 0.7 percent, while same store sales for Golf Galaxy dropped 2.9 percent. At the end of the third quarter, total inventory rose 13.1 percent versus the end of the year-ago quarter. During the third quarter of 2015, Dicks Sporting repurchased approximately 3.2 million shares of its common stock for a total cost of $150 million. "Our positive same store sales for the quarter reflected a strong back-to-school selling season tempered by slowing trends later in the quarter. Strength in athletic footwear, accessories and athletic apparel was moderated by the impact of record warm weather in more seasonal categories," said Edward W. Stack, Chairman and CEO. "With strong operational discipline, we generated earnings per share within our guided range." For the fourth quarter, the company expects earnings of $1.10 to $1.25 per share, versus analysts' expectations of $1.43 per share. It projects same store sales to be in the range of negative 2.0 percent to positive 1.0 percent> For the full year, Dick's projects earnings of $2.85 to $3 per share, versus analysts; estimates of $3.19 per share. It also expects same store sales to be approximately flat to 1 percent growth. Dicks Sporting shares fell 16.98 percent to $33.88 in pre-market trading.