DICK’S Sporting Goods Inc. (NYSE: DKS) is scheduled to report first quarter 2019 earnings results on Wednesday, May 29, before market open. Wall Street expects earnings of $0.59 per share on revenue of $1.90 billion.
Earnings are estimated to be in line with the prior-year
quarter while revenue is expected to decline slightly. The company has topped earnings
estimates in three of the trailing four quarters.
DICK’S sales have fallen over the past two quarters and the
company has been seeing weakness in its hunting segment, mainly due to
government restrictions on firearm sales. The retailer has been slowly removing
hunting goods from its stores and replacing it with other products.
Comparable sales have also shown a declining trend for the
past several quarters. During the fourth quarter earnings announcement, the
company had expressed optimism that it would return to positive comp sales in
the second quarter of 2019.
DICK’S has been investing significantly in its stores and
its e-commerce channel and these investments are likely to prove beneficial
going forward. However, higher costs are hurting margins and this trend could continue
in the first quarter.
In the fourth quarter of 2018, DICK’S reported earnings in line with estimates and revenue that surpassed expectations. Net sales fell 6.5% to around $2.49 billion while earnings declined 3.6% to $1.07 per share.
Consolidated same-store sales fell by 3.7%. E-commerce sales
rose 17% while e-commerce penetration was approx. 23% of total net sales.
For the full year of 2019, DICK’S projects EPS to be approx. $3.15 to $3.35. Consolidated same-store sales are currently expected to be approx. flat to an increase of 2%, compared to a 3.1% decrease in 2018.
DICK’S Sporting Goods’ shares have gained 16% so far this year.