Dick’s Sporting Goods made a splash, beating out Wall Street’s earnings estimates Wednesday, but that didn’t stop its stock from slipping into the negative.
The nation’s largest athletic goods retailer announced its fiscal second quarter earnings and delivered its forecast for 2025. Dick’s (NYSE: DKS) reported quarterly earnings of $4.37 per share, beating the $3.83 per share expectation. It also generated $3.47 billion in revenue for the quarter, which ended on Aug. 3, while driving $362 million in net income over the three-month period. That total revenue bump is also 7.8% increase year over year while it raised its full year 2024 guidance for comparable sales growth to a range of 2.5% to 3.5% (up from 2% to 3%).
Still, shares at one point dropped more than 6% on Wednesday afternoon despite the company increasing profit margins and beating out analyst estimates. Dick’s shares finished down nearly 5% at market’s close at $220.77.
The Coraopolis, Pa.-based retail giant, which saw same-store sales grow 4.5% YoY, couldn’t impress investors enough with its full-year outlook, which led to a noticeable dip on the stock market. Dick’s is among other sports retail companies that have issued cautious guidance to its shareholders due to the U.S. presidential election potentially impacting consumer spending negatively. Many retail investors remain doubtful that the rest of the year will yield strong sales results for this reason as well as uncertainties tied to the Federal Reserve’s expected rate cut later this month.
