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Dicks Sporting Goods shares are slipping as sales fail to meet expectations and make Under Armor responsible

Dicks Sporting Goods' shares fell more than 9 percent Wednesday morning after the retailer sold fewer goods in the second quarter than analysts expected.

9659004) "As expected, revenues were impacted by the strategic decisions we made in terms of Slow Growth, Low Margin Hunt and Electronics, which accounted for nearly half our Comps decline, "said CEO Ed Stack. "In addition, we have continued to see significant declines in Under Armor sales due to the decision to expand sales."

Dicks was also one of the first companies in the US to stop selling high capacity assault rifles and magazines. The sale of weapons to customers Under the age of 21, after being massacred at a high school in February in Parkland, Florida, was banned. The company had predicted that this move could impact sales but also attract more buyers into its stores.

Stack said Wednesday he was confident sales would turn when these challenges abated.

Dicks has increased its earnings outlook for the full year now expects earnings of $ 3.02 to $ 3.20 per share in 2018, compared to an earlier range of $ 2.92 to $ 3.12 [19659003] The second-quarter sporting goods retailer reported compared to Wall Street analysts surveyed by Thomson Reuters: [19659009] Adjusted earnings per share: $ 1.20. $ 1.06 expected

  • Revenues: $ 2.18 billion vs. $ 2.24 billion expected
  • same-store sales: down 4 percent from minus 0.6 percent expected
  • Just before the opening bell, its shares were up 9 percent.

    Dicks said online sales increased 12 percent in the quarter, bolstered by some of its private label brands.

    The company has invested more in its own in-house lines, such as Second Ski n, which is remarkably similar in style and fit to Under Armor. It's also seen success with a line for women named Calia by Carrie Underwood.

    Dicks is one of the last major stationary sporting goods retailers and has benefited from a wave of retail bankruptcies in recent years, including Sport Authority and Sport Chalet

    But that does not mean that Dick can avoid the Amazon threat added new sportswear brands to their website this year and worked with Nike to expand their marketplace.

    "While we realize same-store sales missed expectations, [Dick’s] seems to be managing its transformation into a more focused higher margin business well," said Susquehanna Financial Group analyst Sam Poser in a research note.

    Dicks Sporting Goods shares have risen by 26 This year, the company's market capitalization was approximately $ 3.7 billion.

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