(March 12): Dick’s Sporting Goods Inc forecast full-year sales growth across the company’s namesake brand stores as well as at the newly acquired Foot Locker chain.
Comparable sales at the Dick’s Sporting Goods business are expected to be in a range of 2% to 4% in the current fiscal year, the company said in a statement on Thursday. Growth at Foot Locker is expected to be in a range of 1% to 3%.
Investors have been concerned about the costs Dick’s will incur in the process of integrating Foot Locker, which has a vastly different model. Those worries have contributed to the retailer’s stock declining in recent months. The guidance may alleviate unease about the acquisition, which was completed in September.
Dick’s has far fewer locations than Foot Locker, with many in suburban areas spanning the US. Foot Locker stores are often smaller and are across about 26 countries.
The Dick’s business remains strong and a sales turnaround at Foot Locker appears to have been on track during the back-to-school timeframe, said Lindsay Dutch, Bloomberg Intelligence senior analyst. But “guidance points to some profit pressure from Foot Locker.”
Consolidated adjusted earnings per share are expected to be in a range of US$13.50 to US$14.50.
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Dick’s shares rose 1.6% at 9.35am in New York. The stock slipped 1.2% for the year through Wednesday’s close while the S&P Midcap 400 Index rose 3.4%.
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