Dick‘s Sporting Goods Inc. shares slid 9.5% in premarket trade Wednesday, after the retailer posted weaker-than-expected sales for the second quarter and offered below consensus same-store sales guidance for the full year. The company said it had net income of $119.4 million, or $1.20 a share, in the quarter, up from $112.4 million, or $1.03 a share, in the year-earlier period. Sales rose to $2.177 billion from $2.157 billion. Same-store sales fell 4%. The FactSet consensus was for EPS of $1.06, sales of $2.237 billion and a same-store sales decline of 0.6%. Chief Executive Edward Stack said sales were "impacted by the strategic decisions we made regarding the slow growth, low margin hunt and electronics businesses, which accounted for nearly half of our comp decline.‘ The company also experienced "significant declines" in sales of Under Armour products, as a result of their decision to expand distribution. Dick‘s raised its full-year EPS guidance to a range of $3.02 to $3.20 from a prior range of $2.92 to $3.12. But full-year same-store sales are expected to fall 3% to 4%. The FactSet consensus is for full-year EPS of $3.08 and for a same-store sales decline of 0.8%. Shares have gained 26.6% in 2018, while the S&P 500 has gained 8.4%.
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