DICK'S Stock Plunges 24% as Sneaker Reset Forces Guidance Cut
DKS is trading near its 52-week low of $128.7 (0.5% above the low) on elevated volume (12× avg).
Summary
DICK'S missed Q2 earnings and sales estimates, with adjusted EPS of $3.53 vs $3.77 expected and revenue of $5.59B vs $5.65B. The company slashed full-year adjusted EPS guidance to $11-$12 from $13.50-$14.50, well below the $14.22 consensus. The core DICK'S business grew comps 4.9%, but Foot Locker segment posted a $31.9M loss with pro forma comps down 3.6%. Executive Chairman Ed Stack described a painful industry reset as legacy sneaker styles lose favor, causing excess inventory and aggressive discounting. Shares fell 23.65% to $136.91, near the 52-week low. This follows the earlier 8-K and Dow Jones reports from this morning, but adds the market's sharp negative reaction and management's candid commentary on the footwear cycle.
At the time of this announcement, DKS was trading at $129.33 on NYSE in the Trade & Services sector, with a market capitalization of approximately $11.6B. The 52-week trading range was $128.70 to $244.38. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Benzinga.