Dick's Sporting Goods Inc. (DKS) isn't closing out earnings season as it would have hoped.
Shares of the sporting goods retailer slid nearly 8% at Tuesday's open as the company continues to exhibit falling same-store sales numbers, overshadowing earnings-per-share figures that beat Wall Street estimates.
Net sales decreased 6.5% in the fourth quarter, leading to a full-year decline in net sales of more than $150 million. Meanwhile, non-adjusted same-store sales fell 3.7% in the fourth quarter, nearly doubling the decline felt in the year-earlier fourth quarter.
In addition, fourth-quarter gross margin came in short of analyst estimates and reflected a decline of just over 1% year over year.
Looking forward, Dick's expects full-year 2019 earnings per share to come in between $3.15 and $3.35 against an analyst consensus of $3.34 per share.
Consolidated same-store sales are expected to be flat to an increase of 2%, curbing the slide seen in recent times and stemming the 3.1% decrease felt in 2018.
"As we look forward to 2019, we are enthusiastic about our business and expect to return to positive comp sales beginning in the second quarter," CEO Edward Stack said in a statement. "We will continue to make significant investments in our business to meet our athletes' ever-changing needs and grow our leadership position in the industry."
One bright spot in the earnings release is the company's e-commerce acceleration, as the sales segment marked a 17% increase year over year. The increase marks the third straight year of increases in online sales for Dick's.
"In 2019, we are focused on enhancing our athletes' experience in our stores, improving our eCommerce fulfillment capabilities and elevating our technology talent and capabilities," President Lauren R. Hobart said. "This is an exciting time for our company as we remain focused on building the best omni-channel experience in sporting goods."
Company filings also note that the retailer anticipates capital expenditures to be approximately $230 million on a gross basis, which would be up from $198 million in 2018, suggesting Dick's will indeed spend to kick-start sales.
An earnings conference call wherein executives will attempt to explain the spending program and highlight the positives is scheduled for 10 a.m. ET
