PITTSBURGH (AP) — Dick's Sporting Goods Inc. shares tumbled Tuesday as its first-quarter results missed analysts' expectations and the company cut its earnings forecast for the year.
The key golf and hunting sales categories lagged while athletic clothing, athletic footwear and team sports merchandise strengthened.
Its shares dropped more than 17 percent in afternoon trading.
Chairman and CEO Edward Stack said in a statement that Dick's anticipated sales of golf products would modestly improve in the first quarter compared with the prior-year period, but the category continued a significant decline. Hunting was expected to be weak, but was softer than expected.
The company reported that its first-quarter net income rose 8 percent overall to $70 million, or 57 cents per share, from $64.8 million, or 52 cents per share, a year ago.
Excluding a gain on an asset sale, earnings were 50 cents per share. That was 2 cents shy of what analysts surveyed by FactSet expected.
Revenue rose 8 percent to $1.44 billion from $1.33 billion. Still, it was short of Wall Street's prediction for $1.46 billion in revenue.
Sales at stores open at least a year, a key gauge of a retailer's health, increased 1.5 percent. But this was below Dick's forecast for an approximately 3 percent to 4 percent rise. The figure excludes results from stores recently opened or closed.
Dick's anticipates full-year adjusted earnings of about $2.70 to $2.80 per share. Its previous guidance was for $3.03 to $3.08 per share. The retailer expects second-quarter earnings of approximately 62 cents to 67 cents per share.
Analysts predict full-year earnings of $3.08 per share and second-quarter earnings of 82 cents per share.
Dick's stock dropped $9.29, or 17.5 percent, to $43.87 in afternoon trading. Its shares had fallen 8.5 percent so far this year through Monday's close.