Fitness financials: Dick's Sporting Goods shares hit 52-week low, plus Sport Chalet

Dick’s Sporting Goods shares hit 52-week low

Shares of Dick’s Sporting Goods (NYSE: DKS) fell sharply on Nov. 11 as a weak retail environment made investors nervous, ultimately causing the company to hit a new 52-week low during the day’s trading.

Company shares shed as much as $2.38, hitting a low of $11.80, during the day’s trading, part of a larger market drop. It closed at $11.94 on a volume of 4.2 million.



“We believe the current consumer slowdown will impact the company’s ability to achieve our longer-term growth expectations as developers build fewer new retail centers and consumers reduce discretionary spending,” Wedbush Morgan Securities analyst Jeff Mintz wrote in a research note.

Wedbush Morgan Securities downgraded Dick’s to a “Hold” rating from a “Buy,” saying the consumer turndown is going to be longer than initially believed.

Sport Chalet’s fiscal Q2 loss widens

Sport Chalet’s (Nasdaq: SPCHA and SPCHB) fiscal second-quarter net loss widened as it continued to experience a difficult retail environment.

For the quarter ended Sept. 28, net loss was $4.2 million, or a loss of $0.30 per diluted share, compared to a net income of $739,000, or a loss of $0.05 per diluted share, for the second quarter last year.

Sales decreased 1.2 percent to $96.5 million for the second quarter of fiscal 2009 from $97.7 million for the second quarter of fiscal 2008. Seven new stores not included in same store sales contributed $6.4 million in sales for the quarter, while same store sales decreased 6.7 percent.

Gross profit as a percent of sales was 26.5 percent compared to 30.4 percent for the second quarter of last year. Sport Chalet said the drop was primarily due to increased promotional activity, increased rent as a percent of sales in newer stores, and increased use of its Action Pass which allows consumers to accumulate points for discounts on purchases.

Selling, general and administrative expenses as a percent of sales increased to 29.6 percent from 25.4 percent in the same period last year. It reflected the decrease in comparable store sales, the expenses associated with new stores, which take time to ramp up, and an increase in professional fees, it said.

–Compiled by Wendy Geister



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