Dick's Sporting Goods (DKS) Stock Plummets on Earnings Miss

Dick's Sporting Goods (DKS) stock is declining in pre-market trading on Tuesday, after the company's 2015 third quarter earnings missed analysts' expectations.
By Amanda Albright ,

NEW YORK (TheStreet) -- Dick's Sporting Goods  (DKS) - Get Report stock is falling by 16.07% to $34.20 in pre-market trading on Tuesday, after the company's 2015 third quarter earnings results missed analysts' expectations. 

The Coraopolis, PA-based sports equipment and apparel retailer reported third quarter earnings of 45 cents per share. Revenue increased by 7.6% year over year to $1.6 billion. 

Analysts surveyed by Thomson Reuters expected the company to report earnings of 47 cents per share on revenue of $1.64 billion for the three month period ended in October.

Same-store sales grew by 0.4%, below the 1.9% increase that was expected.

Warm weather hurt sales of athletic footwear, accessories and athletic apparel, CEO Edward Stack said in a statement.

"As we look to the fourth quarter, we anticipate a more promotional environment," Stack said. "Our focus will be to actively manage our inventory levels, while continuing to take the appropriate actions to win share and strengthen our business for the long term."

Separately, TheStreet Ratings team rates DICKS SPORTING GOODS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate DICKS SPORTING GOODS INC (DKS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.

You can view the full analysis from the report here: DKS

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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