Dick's Core Business Grew Comparable Sales 4.9% While Foot Locker's Fell 3.6%. Here's Why the Full-Year Guidance Still Came Down.
The retailer's core business just grew sales nicely. The profit outlook fell apart anyway -- and management named the reason.
Overview
Shares of Dick's Sporting Goods (NYSE:DKS) fell about 29% Tuesday morning, as of this writing, after the retailer reported its second-quarter results. The odd part is what the report said about demand. Comparable sales at the DICK'S business grew 4.9% year over year, with help from the 2026 FIFA World Cup, and management maintained its full-year sales outlook for that business.
The damage sits in the profit outlook. Dick's cut its full-year earnings guidance to $10.94 to $11.94 per share on a GAAP basis, and to $11.00 to $12.00 on a non-GAAP (adjusted) basis. Three months ago, the adjusted range was $13.50 to $14.50.
Details
Why would a company selling this well expect to earn about 18% less than it thought in May? Management's answer has two parts -- a marketplace that turned promotional, and a Foot Locker recovery that went backward.
Source
Originally published at www.fool.com.
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