Dick's Sporting Goods Inc. (DKS) - Get Report posted a wider-than-expected first quarter loss Tuesday as coronavirus store closures hammered sales, but noted improving conditions and a surge in online orders.
Dick's said its adjusted loss came in at 62 cents per share for the three months ending on May 4, wider than the 57 cent loss expected from the Street consensus forecast as same store sales tumbled 29.5% and revenues slumped 30.6% to $1.33 billion.
The group noted, however, that current quarter comparable sales were down only 4% from the same period last year as nearly 80% of its stores around the country have re-opened in the wake of the worst of the coronavirus pandemic, while e-commerce sales rose 110% over the first quarter.
"Although the business environment of 2020 remains uncertain, DICK'S Sporting Goods is in a position of strength. We believe coming out of the current crisis, health and fitness will become even more important to the consumer," said CEO Ed Stack. "As the leader in the sporting goods retail sector, our relationships with key brands have never been stronger and we are in a great place to support this demand."
"Our balance sheet is strong, and due to the actions taken when the pandemic first hit, we have enhanced liquidity to emerge from this crisis in an even stronger competitive position," he added. "Now, with confidence in our liquidity position and our stores re-opening, we can turn our attention to gaining market share for the remainder of 2020 and positioning our business for profitable growth in 2021."
Dick's shares were marked 0.77% higher in early Tuesday trading following the earnings release to change hands at $36.70 each, a move that would trim their year-to-date decline to around 25%.