$DKS Guides Lower for 2016 and 2017, Citing ‘Liquidation Activity’ as Main Concern

In what can only be described as great news for DKS shareholders, the company is guiding down comps and earnings for all of 2016 and 2017. Talk about having confidence in your brand and accountants. This company has it all.

Dick’s is citing ‘liquidation’ fuckery as the main driver in the guiding down of numbers. If I am to guess on my own here, without the help of Dick management, I’d say The Sports Authority is basically giving shit away, making it hard for Dick’s to compete. Ergo, the company is guiding lower as The Sports Authority winds the fuck down.

Reports Q1 (Apr) earnings of $0.50 per share, $0.01 better than the Capital IQ Consensus of $0.49; revenues rose 6.1% year/year to $1.66 bln vs the $1.66 bln Capital IQ Consensus.

Comps +0.5% vs. +0-1% guidance and +1% last year; same store sales for DICK’S Sporting Goods increased 0.4%, while Golf Galaxy increased 1.7%. First quarter 2015 consolidated same store sales increased 1.0%

Co issues downside guidance for Q2, sees EPS of $0.62-0.72 vs. $0.78 Capital IQ Consensus; comps down 1-4% vs. ests near +0.4%
Co issues downside guidance for FY17, sees EPS of $2.60-2.90 vs. $2.96 Capital IQ Consensus; comps -1% to +1% from +0-2%. The Company’s consolidated earnings per diluted share guidance contemplates expected liquidation activity in the market. It also includes the expectation of ~$100 to 200 million of share repurchases in 2016.

“Given the expected near-term liquidation activity in the market, we have adjusted our guidance to contemplate this dynamic. Over the longer term, we remain confident in our ability to aggressively capture displaced market share and to strengthen our leadership position.”

Shares are little changed in the pre-market.