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Tuesday, March 13, 2018

-=Dick's Sporting Goods (DKS) reported earnings on Tue 13 March 18 (b/o)

  • #15, 72

Dick's Sporting Goods beats by $0.02, misses on revs; guides FY19 EPS in-line; Q4 comps -2.0% 
  • Reports Q4 (Jan) earnings of $1.22 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $1.20; revenues rose 6.5% year/year to $2.66 bln vs the $2.73 bln Capital IQ Consensus. Consolidated same store sales decreased 2.0% on a 13-week to 13-week comparative basis compared to the Company's guidance of a low single-digit decrease. Fourth quarter 2016 consolidated same store sales increased 5.0%.
  • Co issues in-line guidance for FY19, sees EPS of $2.80-3.00 vs. $2.90 Capital IQ Consensus Estimate.  Consolidated same store sales are currently expected to be in the range of approximately flat to a low single-digit decline on a 52-week to 52-week comparative basis, compared to a 0.3% decrease in 2017. The Company expects to open approximately 19 new DICK'S Sporting Goods stores and relocate approximately four DICK'S Sporting Goods stores in 2018. Eight of the new stores are expected to open during the first quarter. The Company does not expect to open any new Field & Stream or Golf Galaxy stores in 2018.
  • During the fourth quarter of 2017, the Company recorded a charge of $6.0 million for federal and state income taxes related to the deemed repatriation of accumulated but undistributed earnings of foreign operations, partially offset by an income tax benefit of approximately $5.3 million in connection with the estimated revaluation of deferred income tax assets and liabilities to reflect the effect of enacted changes in tax rates. As a result of the Tax Act, the Company's earnings per diluted share guidance assumes an effective tax rate of approximately 26%.
Dick's Sporting Goods On Call 
  • team sports, footwear, and outdoor equipment business comped positively
    • strengths were offset by hunting and electronic categories while apparel comped flat
  • comp decrease was driven by 2% decline in ticket due to promotional environment
  • apparel sales growth were driven by adidas, CALIA, and Patagonia
    • offset by weakness in the Under Armour brand (cited expanded distribution and a highly promotional environment impacting UAA's sales)
  • hunting remained under pressure/ business comped negative high single digits indicative of a weak overall industry demand
    • expects hunting headwinds to continue throughout 2018
    • likely be more impactful after their recently announced firearms policy changes
  • says anniversary of Cubs 2016 world series was a 'significant headwind' to comps during the quarter

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