Dick’s Sporting Goods narrowly beat consensus estimates for fourth-quarter earnings, but provided a weak outlook for 2019 same-store sales growth, sending shares down nearly 7% early Tuesday.
The sporting-goods retailer reported adjusted fourth-quarter earnings of $1.22 a share, ahead of the $1.06 that analysts surveyed by Bloomberg were expecting. Meanwhile, full-year 2018 earnings of $3.24 came in at the high-end of the company’s guidance of $3.15-3.25.
Sales were $2.6 billion for the quarter, edging out the $2.49 billion that was expected. E-commerce sales increased 17% during the quarter.
Looking ahead, the company sees 2019 same-store sales growth of 0%-2%.
“As we look forward to 2019, we are enthusiastic about our business and expect to return to positive comp sales beginning in the second quarter,” said Dick’s CEO Edward Stack in the press release. “We will continue to make significant investments in our business to meet our athletes’ ever-changing needs and grow our leadership position in the industry.”
Tuesday’s report highlighted further strains on the industry. Also on Tuesday, the privately-held Modell’s Sporting Goods announced the hiring of a restructuring adviser. Rival The Sports Authority filed for bankruptcy in 2016.
“We expect the stock to see modest pressure today with investors focused on the underlying comp rate ex -guns and electronics vs. how promotions helped drive the sales upside,” JPMorgan (NYSE:JPM) analyst Chris Horvers said in a research note published following the earning release.
Dick’s was up 16% this year.