Dick’s Sporting Goods (DKS) reports Q1 bottom line, sales down 30%

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Dick's Sporting Goods (DKS) reports Q1 net loss, sales down 30%

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Merchandise is shown for sale at a Dick’s Sporting Goods Inc. shop in West Nyack, New York.

Craig Warga | Bloomberg | Getty Images

Dick’s Sporting Goods on Tuesday reported a decrease in same-store sales of nearly 30% for the very first quarter, when shops throughout the nation were shut throughout the coronavirus crisis. 

The seller stated e-commerce sales, nevertheless, rose 210% considering that March 18, when its shops were closed, through completion of the very first quarter. It stated online sales were up 110% for the whole quarter as individuals stuck at house stockpiled on weights, exercise clothing and other physical fitness equipment to keep them hectic. It likewise stated it got an increase from its curbside pickup service. 

Dick’s shares increased 1.5% in premarket trading Tuesday following the release. Its stock is down about 26% for the year. 

Dick’s reported a bottom line of $143.4 million, or $1.71 a share, for the duration ended May 2, compared to revenues of $57.5 million, or 61 cents per share, a year previously. 

Dick’s stated net sales fell about 31% to $1.33 billion from $1.92 billion a year back. 

Analysts had actually been requiring Dick’s to report a loss of 57 cents per share on sales of $1.45 billion, according to Refinitiv information. However, it is challenging to compare noted revenues to expert price quotes for the quarter due to the fact that the pandemic continues to strike worldwide economies with distinct revenues effects. 

The business stated it thinks its organisation will benefit as its shops resume, and “health and fitness will become even more important to the consumer.” 

As of completion of last month, about 80% of its shops have actually resumed, it stated. 

The business included that through the very first 4 weeks of the 2nd quarter, with 44% of its shops staying closed on average, combined same-store sales fell simply 4%. 

“As the leader in the sporting goods retail sector, our relationships with key brands have never been stronger and we are in a great place to support this demand,” CEO Ed Stack stated in a declaration. 

Dick’s stated it ended the very first quarter with $1.5 billion in money and money equivalents, and $1.4 billion in exceptional loanings under its revolving credit center. 

Like lots of other business, it is not using a monetary outlook for 2020. 

Find the complete revenues news release from Dick’s here. 

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