Dick’s Sporting Goods Inc. (DKS) Falls 8.27% After Q4 2016 Earnings

Dick’s Sporting Goods Inc. (DKS) stock rose slightly in pre-market trading on Tuesday before suffering a drop of over 8%. The company posted better-than-expected Q4 2016 earnings, with diluted GAAP EPS of $0.81. The retailer’s consolidated net income hit $90.2 million on the quarter.

Dick's Sporting Goods Inc. (DKS)

The company’s adjusted EPS was $1.32, surpassing analyst expectations of a $1.30 EPS.

Asset impairments, store closing charges and inventory write down charges were $93 million. Year-over-year, the company’s consolidated same-store sales rose 5% in the final quarter.

The company’s revenue grew 10.9% compared to the same period last year, with revenue of $2.48 billion. Net income for the year was $287.4 million. Diluted EPS for the year ended January 28, 2017 was $2.56.

CEO Edward W. Stack states that the company will continue to evolve its business and remain aggressive to maintain market share. He plans to optimize the company’s assortment of goods to offer a better selection to consumers.

Dick’s Sporting Goods Inc. (DKS) Expect Declines


The company forecasts EPS for the first quarter of 2017 to be between $0.48 and $0.53.

Full year diluted EPS in 2017 is expected to fall between $3.63 and $3.73. Same-store sales for the first quarter of the year are expected to rise 3% to 4%. The company’s initial growth will slow to 2% – 3% on a full year basis in 2017.

Gross expenditures for the 2017 year are forecasted to be $465 million.

Thomas Reuters has the company’s Q1 EPS at $0.61 and full year EPS at $3.09. The company’s earnings topped expectations on the fourth quarter. The company raised its quarterly dividend on February 9 to $0.17 per share, an increase of 12%.

Dick’s Sporting Goods Inc. (DKS) will open two new stores in March to bring the company’s total stores to 682. A new store will open in Sunnyvale, California, marking the company’s first store in the city.

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Jacob Maslow is a writer and marketing specialist who began his career as a payroll manager. The same affinity for numbers that originally led him to an early career in accounting now comes in handy when it comes to understanding and working with marketing analytics. A native of New York, Maslow is now based in the Middle East, where he lives with his wife and five children and provides high-quality services to clients in a variety of industries, including the legal, medical and financial sectors.