Business & Finance
Dick's Sporting Goods misses Q2 revenue estimates and cuts full-year outlook
The retailer cited headwind pressures in the athletic footwear and apparel market, particularly within its Foot Locker unit.
The short version
- Dick's Sporting Goods generated $5.59 billion in second-quarter revenue, falling short of Wall Street's $5.65 billion forecast.
- The retailer lowered its full-year net sales expectations to between $21.9 billion and $22.2 billion due to weakness in its Foot Locker business.
- While Foot Locker comparable sales dropped 3.6%, core Dick's brand stores recorded a 4.9% comparable sales increase.
Key facts
- Dick's Sporting Goods reported second-quarter revenue of $5.59 billion, below the $5.65 billion expected by Wall Street analysts.[CNBC]
- Net income for the quarter ended August 1 decreased to $315 million ($3.50 per share) from $381 million ($4.71 per share) in the prior-year period.[CNBC]
- The company reduced its full-year net sales guidance from a range of $22.1 billion to $22.4 billion down to $21.9 billion to $22.2 billion.[CNBC]
- Dick's lowered its consolidated operating income forecast for the year to between $1.45 billion and $1.55 billion, down from the previous $1.69 billion to $1.81 billion range.[CNBC]
- Comparable store sales for Foot Locker fell 3.6% in the quarter, whereas Dick's brand stores logged 4.9% growth in comparable sales.[CNBC]
- During the second quarter, Dick's received $59 million in tariff refunds along with $2.1 million in related interest income.[CNBC]
What remains uncertain
- It was not immediately clear if the adjusted earnings per share of $3.53 reported by Dick's was directly comparable to Wall Street's $3.76 estimate.[CNBC]