Dicks Sporting Goods Offered Tepid Outlook, But Beat Q1 Estimates

Dicks Sporting Goods Inc. DKS offered a downbeat outlook for the second quarter and the full year.

Dicks Sporting Goods said its net income fell 10.11 percent to $56.9 million in the first quarter from $63.3 million while earnings fell 5.7 percent to $0.50 a share from $0.53 a share in the year-ago quarter. Street analysts' expected the company to report earnings of $0.49 per share.

The company's net sales advanced 6.1 percent to about $1.66 billion from $1.57 billion in the previous year quarter. Street estimated $1.63 billion revenue. Its consolidated same store sales rose 0.5 percent. Same store sales for Dicks Sporting Goods grew 0.4 percent, while Golf Galaxy advanced 1.7 percent.

The retailer's Chairman and CEO, Edward Stack, commented, "We are pleased to have delivered first quarter earnings at the high end of our expectations in a challenging retail environment. The consolidation that is occurring among sporting goods retailers is creating a unique time in the industry. Given the expected near-term liquidation activity in the market, we have adjusted our guidance to contemplate this dynamic. Over the longer term, we remain confident in our ability to aggressively capture displaced market share and to strengthen our leadership position."

Going forward, Dicks Sporting Goods expects earnings of $0.62-$0.72 a share for the second quarter while it guided earnings of $2.60-$2.90 a share for the full year. Both fell short of the Street analysts' predictions of $0.78 a share for the second quarter and $2.95 a share for the full year.