Dick’s Sporting Goods (DKS) - Get Report, the country’s largest sporting-goods retailer, said Wednesday that it was suspending stock buybacks, considering a dividend reduction and cutting top executive salaries as a result of the coronavirus pandemic.
“In response to the current business environment, as impacted by Covid-19, the company is taking several precautionary measures and appropriately adjusting its operational needs, including a significant reduction in expenses and planned inventory receipts,” Dick's said in Form 8-K filed with the Securities and Exchange Commission.
“As part of these efforts, the company temporarily reduced the base salaries of its named executive officers, all other members of the company’s senior management team and other salaried teammates.”
Dick’s said it’s also changing its capital-allocation plan for 2020. “This includes significantly reducing its planned capital expenditures, temporarily suspending its share repurchases and evaluating its dividend program,” the filing said.
Dick’s said it would pay its regular quarterly dividend of 31.25 cents a share on March 27 to holders of record March 20.
As for the salary cutbacks, Chairman Edward Stack and CEO Lauren Hobart will receive no salary, while the salary of Chief Financial Officer Lee Belitsky will be halved.
In other sports-retail-related news, Nike said Tuesday that its revenue rose 5% in the quarter ended Feb. 29, to $10.1 billion from $9.6 billion a year ago. That topped analysts’ consensus estimate of $9.8 billion for the latest quarter, according to Refinitiv.
As for Dick’s, at last check its shares stood at $20, up 2.3%.