Dick’s Sporting Goods Reports Challenging Quarter, Stock Value Declines

One sentence summary – Dick’s Sporting Goods has reported a challenging quarter, with a significant decline in stock value, prompting CNBC’s Jim Cramer to suggest that Wall Street’s reaction may have been excessive; CEO Lauren Hobart attributes the disappointing quarter to excess inventory and shrinkage, and Cramer believes the challenges are already factored into estimates and that the company’s long-term growth opportunities are being overlooked.

At a glance

  • Dick’s Sporting Goods stock value declined over 24% in a challenging quarter.
  • Earnings per share of $2.82 fell short of analysts’ expectations of $3.81 per share.
  • Revenue for the quarter was slightly lower than anticipated at $3.22 billion.
  • Dick’s has revised its profit forecast for the remainder of the year.
  • CEO Lauren Hobart attributes the disappointing quarter to excess inventory and shrinkage.

The details

Dick’s Sporting Goods has recently reported a challenging quarter, resulting in a significant decline of over 24% in its stock value.

CNBC’s Jim Cramer has commented on this development, suggesting that Wall Street’s reaction to the stock drop may have been excessive.

The company’s earnings per share of $2.82 fell considerably short of analysts’ expectations of $3.81 per share.

Additionally, the revenue for the quarter was slightly lower than anticipated, with $3.22 billion compared to the expected $3.24 billion.

In response to these challenges, Dick’s has revised its profit forecast for the remainder of the year.

CEO Lauren Hobart has attributed the disappointing quarter to two primary factors: excess inventory and shrinkage.

This is the first time in almost two decades that the company has mentioned shrinkage in a press release.

Shrinkage refers to inventory lost due to theft or internal issues.

Despite the market’s immediate reaction, Cramer believes that the challenges faced by Dick’s are already factored into the estimates.

He also suggests that the company’s long-term growth opportunities are being overlooked.

Cramer highlights Dick’s growing “Galaxy Golf” business and the introduction of new “House of Sport” stores, which aim to provide unique customer experiences.

Additionally, the company’s recently launched app, GameChanger, designed for kids’ sports, holds the potential to benefit the company.

At present, Dick’s stock is trading at approximately $100 per share.

This brief provides detailed insights into Dick’s Sporting Goods’ recent performance, including the disappointing quarter, lower-than-expected earnings, and revenue figures.

CEO Lauren Hobart’s explanation for the underperformance, attributing it to excess inventory and shrinkage, is also highlighted.

Furthermore, the brief addresses CNBC’s Jim Cramer’s perspective on Wall Street’s reaction.

It also emphasizes the company’s long-term growth opportunities such as the “Galaxy Golf” business, “House of Sport” stores, and the GameChanger app.

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cnbc.com
– Dick’s Sporting Goods reported a rough quarter, causing its stock to drop over 24%.
– CNBC’s Jim Cramer believes that Wall Street’s reaction to the stock drop was extreme.
The company’s earnings per share of $2.82 fell significantly short of analysts’ expectations of $3.81 per share.
– Revenue also came in slightly lower than expected at $3.22 billion compared to the expected $3.24 billion.
– Dick’s lowered its profit forecast for the rest of the year.
– CEO Lauren Hobart attributed the disappointing quarter to excess inventory and shrink, which refers to inventory lost due to theft or internal issues.
This is the first time in nearly 20 years that the company has mentioned shrink in a press release.
– Cramer believes that the problems with Dick’s are already factored into the estimates, while the company’s long-term growth opportunities are being ignored.
– Dick’s has a growing “Galaxy Golf” business and new “House of Sport” stores that offer unique experiences for customers.
The company’s new app GameChanger, designed for kids’ sports, could be beneficial for the company.
– Dick’s stock currently trades at around $100 per share.

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