Dick's Sporting Goods (DKS) - Get Dick's Sporting Goods Inc Report slid 10.59% to $34.77 on Tuesday after the sporting goods retailer beat Wall Street's fourth-quarter earnings forecast but reported falling sales.
The Coraopolis, Pennsylvania-based company reported fourth-quarter net income of $102.6 million, or $1.07 a share. Adjusted earnings came to $1.22, exceeding analysts' estimates of $1.06. Net sales declined 6.5% from a year ago to about $2.49 billion, but were ahead of analysts' expectations of $2.48 billion. Same-store sales dipped 2.2%, compared with the FactSet estimate of down 3.3%. A year ago, the company reported earnings of $115.9 million and earnings of $1.11 a share.
For the fiscal year, the company reported earnings of $319.9 million, or $3.24 a share. Net sales decreased 1.8% from a year ago to $8.44 billion. Same-store sales decreased 0.3%.
Dick's Sporting Goods said it expects earnings for the next fiscal year of about $3.15 to 3.35 a share.
Same-store sales for the year are currently expected to be about flat to an increase of 2%, compared with a 3.1% decrease in 2018. The company said it expects to deliver positive consolidated same-store sales beginning in the second quarter. The FactSet consensus calls for full-year earnings of $3.34 a share and same-store sales of up 0.5%.
Edward W. Stack, chairman and CEO, said in a statement that "we will continue to make significant investments in our business to meet our athletes' ever-changing needs and grow our leadership position in the industry."
The company also said it would stop selling hunting rifles and ammunition at 125 stores. Last year, Dick's banned sales of guns, assault rifles and high-capacity magazines to people under 21 following a high school shooting in Parkland, Florida in February 2018.