Its shares had been down greater than 7 % in premarket buying and selling following the announcement.
Internet revenue totaled $116 million, or $1.11 a share, for the quarter ended Feb. three, in contrast with $90.2 million, or 81 cents per share, a yr in the past.
Excluding one-time gadgets, the corporate earned $1.22 a share, 2 cents above analysts’ estimates, in response to a Thomson Reuters survey.
Income was $2.66 billion, beneath analysts’ expectations for $2.74 billion in gross sales.
Similar-store gross sales had been down 2 % general for the vacation interval, Dick’s stated, whereas analysts had forecast a decline of simply 1 %. Similar-store gross sales grew 5 % throughout the identical interval a yr earlier.
“As anticipated, margins remained below strain, nonetheless the decline was lower than we anticipated,” CEO Ed Stack stated in a press release. “In 2018, we anticipate stronger product innovation from choose key companions and the continued growth of our non-public manufacturers to lead to much less margin strain than beforehand anticipated.”
Shifting ahead, Dick’s stated Tuesday it’ll now not present analysts and buyers with a quarterly outlook, “to extra carefully align with trade practices.”
The corporate is asking for full-year earnings per share to fall inside a spread of $2.80 to three.00. Similar-store gross sales are anticipated to say no as a lot as a low-single digit proportion, in contrast with a zero.three % drop in fiscal 2017.
Dick’s stated it expects to open about 19 Dick’s Sporting Items shops in 2018 and to relocate 4 outlets to completely different buildings. It is not planning to open any new Discipline & Stream or Golf Galaxy shops this yr.
For Dick’s, “a few of the positives are being ignored,” Wells Fargo analyst Ike Boruchow has stated. This contains favorable winter climate, an Eagles Tremendous Bowl championship that seemingly lifted gross sales, and new laws for Little League baseball bats that not too long ago went into impact, which ought to draw customers into shops this Spring for replacements.
To make sure, the retailer faces continued strain from low cost retailers and Amazon to supply gadgets at decrease costs. Manufacturers like Nike and Under Armour in the meantime are investing in promoting extra merchandise on to shoppers.
Dick’s private-label strains, together with Second Pores and skin and Calia by Carrie Underwood, are a technique the corporate is making an attempt to fight margin strain. It is also been making an even bigger push to win customers on-line, and e-commerce gross sales grew 9 % throughout the fourth quarter.
Shares of Dick’s Sporting Items have fallen greater than 30 % from a yr in the past.