Dick's takes rare tumble
Worse than expected second quarter sales results at Dick’s Sporting Goods sparked new consumer spending concerns and prompted the company to lower its full year profit forecast.
Dicks said sales for the quarter ended August 3, increased 6.6% to $1.5 billion, however same store sales fell 0.4%, versus a planned 2% to 3% increase, when adjusted for a 53rd week in 2012. Profits for the period totaled $84.2 million, or 67 cents a share, compared to $53.7 million, or 43 cents a share.
"Our second quarter results were below our guidance as a sluggish consumer environment along with higher levels of precipitation and cooler temperatures contributed to a decrease in traffic, resulting in lower than expected same store sales," said Ed Stack, Dick’s chairman and CEO.
The company lowered it full year profit forecast to a range of $2.60 to $2.65 per share.
Stack said the reduced guidance was, “primarily due to lower sales expectations for the second half of the year, which are a result of our belief that consumers will remain relatively cautious. In order to drive traffic and respond to the consumer environment we are increasing our advertising levels, enhancing the customer experience, and investing in growth categories."
Despite the difficulties Stack see in the back half of the year, he characterized the challenges as short term in nature and noted that they do, “not change our view of the profitable long-term growth opportunities for our business."
Dick’s ended the quarter with 527 Dick’s Sporting Goods stores in 44 states and 81 Golf Galaxy stores in 30 states.