Dick’s Sporting Goods (DKS) reported an 8% increase in its first-quarter profit but slashed its outlook for the year, spurred by weaker-than-expected sales in hunting and golf.
The seller of sports equipment and apparel now expects to book full-year earnings of $2.70 to $2.85 a share, below its previous call for $3.03 to $3.08 a share. Dick’s also sees comparable store sales rising 1% to 3%, rather than 3% to 4%.
Dick’s also forecast a per-share profit of 62 cents to 67 cents for the second quarter. The consensus estimate on Wall Street is 82 cents.
Shares tumbled 15.8% to $44.76 in recent trading on Tuesday. Since the start of the year, Dick’s stock has fallen nearly 23%.
CEO Edward Stack said the retailer had anticipated a slight rebound in golf sales after a difficult first quarter last year. Dick’s, which owns the Golf Galaxy chain as well, saw “a continued significant decline.” Golf Galaxy’s same-store sales fell 10% in the latest period.
“In the case of hunting, we planned the business down based on last year’s catalysts, but it was even weaker than expected,” Stack added.
Dick’s earned $70 million in the first quarter compared to $64.8 million in the year-ago period. Per-share earnings rose five cents to 57 cents. Excluding gains from asset sales and other items, adjusted earnings checked in at 50 cents a share versus 48 cents.
Sales jumped 7.9% to $1.44 billion, missing expectations for $1.46 billion. Analysts also projected a higher profit of 52 cents a share.
Total same-store sales were up 1.5%, well below the company’s outlook for 3% to 4% growth. Comparable sales for Dick’s Sporting Goods locations climbed 2.3%.