Dick’s cut outlook for the year citing uncertain economic conditions

• The company now expects to earn between $9.15 and $11.70 per share

Dick’s Sporting Goods Inc (NYSE: DKS) on Wednesday cut its outlook for the year amid challenging economic conditions.

Shares of the company closed up 10% after sell-off in shares in early trading. Shares plunged to a fresh 52-week low of $63.45 at one point in the day. 

“Over the past two years, we have demonstrated our ability to adeptly manage through the pandemic and other challenges - and we are confident in our continued ability to adapt quickly and execute through uncertain macroeconomic conditions,” said CEO Lauren Hobart.

The company now expects to earn between $9.15 and $11.70 per share, on an adjusted basis, this fiscal year, compared with a prior range of $11.70 to $13.10 and analysts’ expectations of $12.56, according to Refinitiv estimates.

Dick’s said same-store sales are expected to decline 2% to 8%, compared to prior expectations for sales to be flat to down 4%.

Quarterly performance

Net income of the company in the first quarter was $260.6 million, or $2.47 per share, compared to $361.8 million, or $3.41 a share, a year earlier. 

Dick’s sales fell about 8% to $2.7 billion from $2.92 billion a year earlier, but beat Wall Street expectations.

Picture Credits: Getty Images

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