Dick's Sporting Goods cutting over 100 jobs; shares tumble as sales fall short
Dick's Sporting Goods announced Tuesday that the company is cutting more than 100 jobs.
The majority of the approximately 160 positions being eliminated will come out of the store support center at the company's corporate headquarters in Coraopolis.
Dick's said it is doing some reorganization within the company in an effort to reduce expenses.
"These actions were incredibly difficult but necessary to fund and develop our longer-term strategic initiatives," CEO Edward Stack said.
First-quarter sales rose 2.4 percent at established stores, a bad sign for industry analysts that had projected a 3.5 percent rise, according to FactSet. Those numbers sent shares hurtling 12 percent lower early Tuesday.
Macy's, Nordstrom and other traditional retail stores have been hammered during the quarter, feeling pressure from online rivals. Dick's said Tuesday that it revamped its website earlier this year and sales there have improved.
Net income was $58.2 million, or 52 cents per share, in the three months ending April 29, compared with $56.9 million, or 50 cents per share, in the same quarter a year ago.
Earnings, adjusted for non-recurring costs, were 54 cents per share, matching Wall Street expectations, according to Zacks Investment Research.
Revenue rose 10 percent to $1.83 billion in the period, also meeting Street forecasts.
For the current quarter ending in August, Dick's expects its per-share earnings to range from $1.02 to $1.07. Analysts surveyed by Zacks had forecast adjusted earnings per share of $1.
It expects full-year earnings in the range of $3.65 to $3.75 per share.
The quarterly earnings arrived four days after the company, based just outside of Pittsburgh, said it had made an accounting mistake in its fourth-quarter and full-year reports for the period that ended Jan. 28. Dick's overstated $23.4 million in adjusted earnings before interest, tax, depreciation and amortization.
The company, based in Coraopolis, Pennsylvania, has more than 690 Dick's stores, nearly 100 Golf Galaxy stores and about 30 Field & Stream stores.
Shares of Dick's Sporting Goods Inc., which are already down 10 percent so far this year, fell $5.98 $41.89 at the opening bell.
Tribune-Review news partner WPXI contributed.