$DKS Misses Earnings Estimates

“Dick’s Sporting Goods Inc. (NYSE:DKS) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 7%.

Dick’s Sporting Goods Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 35.53% to $1.03 in the quarter versus EPS of $0.76 in the year-earlier quarter.

Revenue: Rose 12.02% to $1.81 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dick’s Sporting Goods Inc. reported adjusted EPS income of $1.03 per share. By that measure, the company missed the mean analyst estimate of $1.06. It missed the average revenue estimate of $1.86 billion.

Quoting Management: “In the fourth quarter, we experienced continued momentum in athletic footwear and apparel along with strong sales in hunting that exceeded our expectations. These increases were partially offset by lower-than-anticipated sales in outerwear and cold weather accessories, as well as a significant decline in the fitness category,” said Edward W. Stack, Chairman and CEO. “As a result of the unusually warm weather conditions, including during peak selling periods in December, we significantly reduced our inventory levels of cold weather merchandise to align with lower consumer demand and avoid carrying over excess inventory after a second year in a row of warm weather. While this was a prudent move that enabled us to effectively manage inventory and protect our margins, it did limit our ability to capture sales in January when temperatures dropped and snowfall increased.” …”

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