Dick's Slashes Operating Income Guidance by Up to $360M, Shares Tumble 13%
DKS is trading near its 52-week low of $175.65 (13% below the low) on elevated volume (2.8× avg).
Summary
Dick's cut full-year operating income guidance to $1.45B-$1.55B from $1.68B-$1.81B, citing weak athletic footwear and apparel demand. Foot Locker same-store sales are now expected flat to -2%, down from +1.5% to +3%. Q2 EPS of $3.53 missed the $3.76 consensus, and revenue of $5.59B also fell short. Shares dropped 13% premarket to $156.25. This follows the earlier 8-K and news report, but adds specific guidance figures, the EPS/revenue miss, and the premarket reaction.
At the time of this announcement, DKS was trading at $153.46 on NYSE in the Trade & Services sector, with a market capitalization of approximately $16.1B. The 52-week trading range was $175.65 to $244.38. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.