What happened
Shares of Dick's Sporting Goods Inc. (DKS -0.96%) declined 18.6% in the month of May, according to data provided by S&P Global Market Intelligence, after the company announced disappointing first-quarter 2017 results.
So what
Dick's Sporting Goods stock fell nearly 14% on May 16 alone, the first trading day after its report. In it, Dick's revealed that quarterly revenue climbed 9.9% year over year to roughly $1.8 billion. That included a 2.4% increase in comparable-store sales, which was below Dick's guidance for comps to increase in the 3% to 4% range.
IMAGE SOURCE: DICK'S SPORTING GOODS.
To be fair, Dick's also achieved adjusted net income of $60.3 million, or $0.54 per share, which was near the high end of guidance for earnings per share of $0.50 to $0.55.
Now what
"Despite a challenging retail environment, we realized growth across each of our three primary categories of hardlines, apparel and footwear, and were pleased with the performance of our newly relaunched eCommerce site," added Dick's Sporting Goods CEO Edward Stack. "We remain optimistic as we drive profitable growth on our new eCommerce platform, make marked progress on our new merchandising strategy and continue to capture market share."
In the meantime as current industry headwinds persist, Dick's will focus on reducing expenses to fund its longer-term strategic initiatives. So while it's no surprise that shares pulled back last month given Dick's top-line shortfall, the company should be poised to emerge stronger than ever as market conditions improve.
