Outdoor financials: Dick's Sporting Goods' Q2 earnings dip, plus Hibbett Sports
Dick's Sporting Goods said its second-quarter profit dipped 2.5 percent, while sales were boosted 4 percent, and Hibbett Sports' Q2 profit plummeted 77 percent.
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Dick’s Sporting Goods’ Q2 earnings dip
Dick’s Sporting Goods (NYSE: DKS) said its second-quarter profit dipped 2.5 percent, while sales were boosted 4 percent by the opening of new stores and e-commerce sales.
Earnings fell to $38.9 million, or $0.33 per share, compared with $40 million, or $0.34 per share, a year earlier.
Revenue was $1.13 billion versus $1.09 billion last year.
The company said sales were boosted by the opening of new stores and the addition of e-commerce sales, and were partially offset by a 4.1-percent decrease in comparable store sales. The decline in same-store sales consisted of a 3.2-percent decrease in Dick’s Sporting Goods stores and an 11.1-percent decline in the Golf Galaxy stores.
In the second quarter, the company opened four Dick’s Sporting Goods stores and converted the remaining Chick’s Sporting Goods stores to Dick’s Sporting Goods stores. As of Aug. 1, the company operated 409 Dick’s Sporting Goods stores in 40 states.
Looking ahead, Dick’s Sporting Goods anticipates reporting non-GAAP consolidated earnings per diluted share of approximately $1.02 to 1.07 for the full year. On a GAAP basis, the company is anticipating reporting consolidated earnings per diluted share of approximately $0.97 to $1.02. Comparable store sales are expected to decrease approximately 5 percent to 4 percent.
Q2 profit for Hibbett Sports plummets 77 percent
Hibbett Sports (Nasdaq: HIBB) said second-quarter profit fell 77 percent on lower sales compared with a year ago, hurt by the absence of stimulus checks and a shift of tax-free holidays.
Net income was $1.1 million, or $0.04 per share, compared with $4.8 million, or $0.17 per share, a year ago.
Sales fell 6 percent to $123.1 million from $130.3 million.
“The quarter was more difficult than we expected. The lack of stimulus checks versus second quarter one year ago and the shift of tax-free holidays from the second quarter last year into the third quarter this year all factored into our results,” said Mickey Newsome, chairman and CEO, in a statement. “Most merchandise categories were close to plan with the exception of footwear, which significantly underperformed against our plan and negatively influenced product margins.”
The company lowered guidance for the fiscal year to a range of $0.85 to $0.95 from the previous $1.03 to $1.17 per share. It added that it expects same-store sales in the second half of the year to be between down 4 percent to break-even.
–Compiled by Wendy Geister
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