Dick's Sporting Goods tops profit targets, removes hunting merch from 440 stores
Dick’s Sporting Goods removing guns from their stores
Dick’s Sporting Goods has decided to remove the hunting departments from its stores. FOX Business’ Ashley Webster with more.
Dick's Sporting Goods shares jumped 12.2% in Tuesday premarket trading after the retailer reported fourth-quarter earnings that beat expectations. Net income totaled $69.8 million, or 81 cents per share, down from $102.6 million, or $1.07 per share, last year.
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Adjusted earnings of $1.32 per share exceeded the FactSet consensus for $1.22 per share. Adjusted earnings include a $48.8 million pre-tax restructuring charge for the newly-announced removal of the hunt category from about 440 stores in 2020.
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The hunt category includes guns. Sales of $2.61 billion were up from $2.49 billion and beat the $2.56 billion FactSet consensus.
Same-store sales rose 5.3%, blowing past the 3% increase FactSet forecast. Dick's Sporting Goods raised its dividend 13.6% to $0.3125 per share payable on March 27, 2020, to stockholders of record at the close of business March 20, 2020. For 2020, Dick's Sporting Goods expects earnings of $3.60 to $4 a share and same-store sales that will be flat to up 2%.
DICK'S SPORTING GOODS DESTROYS $5M OF HIGH-POWERED RIFLES
The outlook includes the impact of the coronavirus. The FactSet forecast is for EPS of $3.84 and a same-store sales increase of 3.1%. Dick's Sporting Goods stock has fallen 8.9% over the last year while the S&P 500 index is up 0.1% for the period.
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