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Dick's Sporting Goods Halves Quarterly Profit

Dick's Sporting Goods nearly halves its profit in the first quarter, but raises the low end of its full-year guidance.

Dick's Sporting Goods (DKS) - Get Dick's Sporting Goods, Inc. Report nearly halved its profit in the first quarter, but raised the low end of its full-year guidance.

During the quarter, the company earned $10.2 million, or 9 cents a share, compared with $19.6 million, or 17 cents, for the same quarter last year.

Excluding costs related to its Chick's Sporting Goods acquisition, the company posted an adjusted profit of $12.8 million, or 11 cents per share, for the recent quarter. Analysts expected earnings of 7 cents.

Sales rose 5.2% to $959.7 million from $912.1 million a year earlier, boosted by new stores and the roll-out of its e-commerce site. Same-store sales dropped 6%.

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The company now expects earnings in the range of 88 cents to $1 a share for the year, up from previous projection of 80 cents to $1 a share.

For the second quarter Dick's expects a profit between 28 cents to 31 cents a share.

"While some investors may be disappointed by Dick's only raising the bottom end of their guidance range for the year, we think remaining conservative is appropriate and believe that upside to this updated forecast is likely," Christopher Horvers, analyst at J.P. Morgan, wrote in a note on Tuesday.

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