Dick's Sporting Goods On Tuesday it said that 2025 win will be much lower than Wall Street expected, making it the newest retailer who predicts a rocky year in front of the bow, while consumers fight with rates, inflation and fears around a potential recession.
In an interview with CNBC, executive chairman Ed Stack said that the exposure of the company to China, Mexico and Canada for Sourcing is very small, but it acknowledges that the falling of consumer confidence can influence the expenses.
“I think it's just a bit of an uncertain world,” said Stack. “What will happen from the point of view of a rate? Do you know, if the rates are entered and the prices rise as they could, what will happen to the consumer?”
During a call with analysts, CEO Lauren Hobart insisted that the company did not see a weak consumer and said that the guidelines are based on the overall uncertain environment.
“We feel absolutely great about our consumer,” said Hobart. “We simply reflect a suitable level of caution, given so much uncertainty on the market.”
Shares of the company opened approximately 2% lower.
Despite the weak guidelines, the retailer of sporting goods placed his best holiday district on record. The comparable turnover increased by 6.4%, far for the growth of 2.9% that analysts had expected, according to Street account.
This is how Dick's did in his fiscal fourth quarter compared to what Wall Street expected, based on a study among analysts by LSEG:
- Profit per share: $ 3.62 versus $ 3.53 expected
- Gain: $ 3.89 billion versus $ 3.78 billion expected
The reported net result of the company for the three -month period that ended on 1 February amounted to $ 300 million, or $ 3.62 per share, compared to $ 296 million, or $ 3.57 per share, a year earlier.
Turnover increased to $ 3.89 billion, an increase of approximately 0.5% of $ 3.88 billion a year earlier. Just like other retailers, Dick's took advantage of an extra week in the period of the year ago, who was skewed. But unlike many of his colleagues, Dick has still succeeded in growing both sales and the profit in the quarter, even with one sales week.
In the coming year, Dick's expects the profit per share between $ 13.80 and $ 14.40, good at the estimates of Wall Street of $ 14.86, according to LSEG. It is expected that the net turnover will be between $ 13.6 billion and $ 13.9 billion, which, according to High -Onder, will be in line with estimates of $ 13.9 billion, according to LSEG. Dick expects the comparable turnover between 1%and 3%, compared to estimates of an increase of 2.5%, according to street account.
The gloomy profit views come after a wide range of other retailers gave weak predictions for the current quarter or the coming year, in the midst of concern about sliding consumer confidence and the impact rates and inflation could have for expenditure. Kohl's Also offered a weak prospect for the coming year on Tuesday, which means that his shares fell 15%to 15%.
Some retailers blamed an unusually cool February for a weak start of the current quarter, but the most recognized that they are also active in a difficult macro -economic background, and it is more difficult than ever to predict how consumers keep it. In February, consumer confidence slid to the lowest levels since 2021, the job report came weaker than expected and unemployment was attacked. In recent years, a strong labor market has led to many economists bordering concern about the rising delinquencies and debts of the credit card, but those cracks can become deeper if unemployment continues to rise.
On Monday some of those worries activated a sale of a stock market, which extended losses after the S&P 500 had posted three consecutive negative weeks. The Nasdaq composite saw the worst day since September 2022, while the Dow lost nearly 900 points and for the first time since 1 November 2023 under its 200-day advancing average ditch.
In addition to the uncertain macro-economic environment, Dick's plans are to invest heavier in his “House of Sport” concept and e-commerce in the coming year, which it also expects to weigh on winnings. The huge stores of 100,000 square foot are a growth area for the company and include functions such as rock climbing walls and career.
In the coming year, Dick's plans to spend $ 1 billion on a net basic building 16 Extra House of Sport locations and 18 field house locations, which take some of the experimental elements of the House of Sport, but fit in with a traditional store of a Dick.
The strategy comes at a strong point for sport in the country, which is expected to be a tail wind for the company. The World Cup 2026 will be held in North America, women's sports are more popular than ever and consumers are increasingly focused on health and well -being.
“We are going to have a moment here in the next three or four years, from a sports position that I think will put sport on steroids,” said Stack. “We are now going to a sports moment, and we will invest very hard in that sports moment in the coming years, because this will go through it [2030] And maybe beyond. “
– Additional reporting by CNBC's Courtney Reagan.
