Dick's Sporting Goods Shares Take a Hit After Missing Profit Expectations

Shares of Dick's Sporting Goods Inc. fell more than 7.5% in premarket trade after the company miss profit expectations for the fourth quarter. Dick's Sporting Goods reported net income of $128.99 million, or $1.13 per share, compared with $155.54 million, or $1.30 earnings per share in the prior year period. The FactSet consensus for per-share earnings was $1.15. Sales for the quarter increased about 3.7% to $2.24 billion, compared with $2.16 billion during the same time last year. Sales were just below the FactSet consensus of $2.28 billion. The sports apparel and equipment retailer said same-store sales declined 2.5% in the fourth quarter due to unseasonably warm weather. The company said in a statement it plans to invest $50 million to $55 billion in 2016 to enhance the shopping experience, build equity and transition its eCommerce business. During the fourth quarter the company also bought back $57 million in shares and increased its dividend by 10%. Dick's Sporting Goods' shares are up more than 24% in the year so far, outperforming the S&P 500 index, which is down 2%.