Tags: Dicks Sporting Goods | Profit | Earnings | Sales

Dick's Sporting Goods Profit Drops 17 Percent

Tuesday, 19 Aug 2014 10:45 AM

Dick's Sporting Goods Inc. said Tuesday that its net income fell 17 percent in its fiscal second quarter, but its result still beat analysts' expectations and its shares rose in premarket trading.

The sporting goods retailer said it cut jobs in its golf business because of weaker demand for golf gear and services, but did not say how many employees were let go. The company did not immediately respond to a request for comment.

Due to the restructuring of its golf business, Dick's Sporting Goods recorded a $20.4 million charge in the quarter, with about $3.7 million of that used to pay for severance for the eliminated golf employees.

The company said profit fell to $69.5 million, or 57 cents per share, from $84.2 million, or 67 cents per share, in the same quarter a year ago.

Earnings, adjusted for restructuring costs, came to 67 cents per share. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 65 cents per share.

Revenue rose 10 percent to $1.69 billion from $1.53 billion in the same quarter a year earlier, and beat Wall Street forecasts. Analysts expected $1.65 billion, according to Zacks.

Revenue in stores open at least a year — a key metric of a retailer's health — rose 3.2 percent during the quarter.

For the full year, the retailer expects to report adjusted earnings per share of $2.70 to $2.85, compared with the average analyst estimate of $2.78, based on a survey by FactSet.

Shares of Dick's Sporting Goods, which is based in Coraopolis, Pennsylvania, rose 5.7 percent to $45.97 in premarket trading Tuesday. Its shares have fallen about 25 percent since the beginning of the year, as of Monday's closing stock price.

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Dick's Sporting Goods Inc. said Tuesday that its net income fell 17 percent in its fiscal second quarter, but its result still beat analysts' expectations and its shares rose in premarket trading.
Dicks Sporting Goods, Profit, Earnings, Sales
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2014-45-19
Tuesday, 19 Aug 2014 10:45 AM
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