Dick’s Sporting Goods Inc. (NYSE: DKS) released its fiscal second-quarter financial results before the markets opened on Wednesday. The company said that it had $1.20 in earnings per share (EPS) and $2.18 billion in revenue, compared with consensus estimates of $1.06 in EPS and $2.24 billion in revenue. The same period of last year reportedly had EPS of $0.96 and $2.16 billion in revenue.
During the latest quarter, the company reported that consolidated same-store sales decreased 4.0% on a year-over-year basis. eCommerce segment sales increased 12% in the quarter, and eCommerce penetration for the second quarter was about 11% of total net sales, compared to approximately 9% during the second quarter of 2017.
In the second quarter, the company opened five new stores, and as of August 4, the company operated 729 stores.
Looking ahead to the 2018 full year, the company expects to see EPS in the range of $3.02 to $3.20, with same-store sales declining 3% to 4%. Consensus estimates call for $3.09 in EPS and $8.69 billion in revenue.
Edward W. Stack, board chair and chief executive of Dick’s, commented:
We delivered double digit growth in eCommerce, private brands, and athletic apparel excluding Under Armour, however, as expected, sales were impacted by the strategic decisions we made regarding the slow growth, low margin hunt and electronics businesses, which accounted for nearly half of our comp decline. In addition, we experienced continued significant declines in Under Armour sales as a result of their decision to expand distribution. We are very confident our sales trajectory will improve next year as these headwinds are expected to subside.
Shares of Dick’s closed Tuesday at $36.39, with a consensus analyst price target of $39.52 and a 52-week range of $23.88 to $38.99. Following the announcement, the stock was down about 8% at $33.45 in early trading indications Wednesday.