Said Dick's Sporting Goods CEO Ed Stack on Wednesday:
"We delivered double digit growth in eCommerce, private brands, and athletic apparel excluding Under Armour, however, as expected, sales were impacted by the strategic decisions we made regarding the slow growth, low margin hunt and electronics businesses, which accounted for nearly half of our comp decline. In addition, we experienced continued significant declines in Under Armour sales as a result of their decision to expand distribution. We are very confident our sales trajectory will improve next year as these headwinds are expected to subside."
Dick's second quarter same-store sales fell 4%. The company sharply revised down its full year same-store sales guidance.
Shares fell 2% in the session, recovering from a drop of 9%.
Under Armour debuted at department store retailer Kohl's to much fanfare in 2017. The brand is now found in hundreds of Kohl's stores and online. Performance has been strong, likely coming at the expense of Dick's Sporting Goods.
"Under Armour has delivered very strong growth in its second year and accelerated from its first quarter sales performance," Kohl's CEO Michelle Gass said on a second quarter earnings call.
Thanks for nothing.