Dick’s Sporting Goods Inc. (DKS) reduced its guidance Tuesday after profits declined 4.1% in the last quarter.
Company shares tumbled 15% in premarket trading.
The company now projects its earnings will be in the $2.85 to $3 per share range. Previously, Dick’s forecasted earnings of $3.13 and $3.21 per share. Earnings for the fourth quarter are projected to be between $1.10 and $1.25. Analysts were expecting $1.42. Same-store sales are forecasted to be in the -2% and 1% range.
Same-store sales overall increased 0.4%, which was below the retailer’s guidance of 1% to 3%. Same-store sales for Golf Galaxy slipped 2.9%, and inched up 0.7% for Dick’s Sporting Goods.
The retailer reported a profit of $47.2 million ($.41 a share), which was down from the previous year’s profit of $49.2 million ($.41 a share). Dick’s adjusted earnings equated to $.45 a share, which was on the lower end of its forecast for $.45-$.48 a share.
The quarter results also included a litigation settlement charge worth $7.9 million. In addition, Dicks repurchased $150 million of its common stock. Company revenue jumped 7.6% to reach $1.64 billion, which was in line with analyst expectations.
During the latest quarter, the company opened 27 Dick’s Sporting Goods stores and 7 Field & Stream stores.