Boston, MA 08/20/2014 (wallstreetpr) – Dicks Sporting Goods Inc. (NYSE:DKS) reported better than expected Q2 results that beat consensus estimates, despite incurring a 17% drop in profits. The company’s stock was up by 1.61% on Tuesday trading session closing the day at a high of $44.21 as a result of its financial results. Dick’s Sporting also announced that it reduced its workforce in the quarter in its golf business due to lower than expected demand for golf gears, as well as services.
Golf Business Restructuring
The restructuring of the golf business saw the company register approximately $20.4 million charge with about $3.7 million used to pay for charges related to employees who were laid off. Dicks Sporting Goods Inc. (NYSE:DKS) saw its profit for the quarter plummet to $69.5 million or $57 cents a share, down from a high of $84.2 million posted for the same quarter a year ago. Dick’s Sporting also made an improvement in eCommerce penetration for the quarter, which came in at 6.3% of total sales, up from 5.6% sequentially.
Analysts on Wall Street remained upbeat on the company’s stock on the fact that it reported a 10% increase in revenue, which clocked in at a high of $1.69 billion up from $1.53 billion reported a year ago. The company’s revenue also beat Wall Street estimates of $1.65 billion. Dicks Sporting Goods Inc. (NYSE:DKS) expects to post full year adjusted earnings of between $2.70 and $2.85 a share compared to average analysts’ estimates of $2.78.
Dick’s expanding in Kansas
Dicks Sporting Goods Inc. (NYSE:DKS) has been on an expansion rally in some cities, and this time around has announced plans to unveil its new store in Kansas City. The new store will be the company’s 10th store in the town and will be located at Schulman Crossing in Garden City, KS. The opening of the store will also increase Dick’s sporting overall store count in the country to 577.
Some of the offerings that will be predominant with the new store include products from Nike Inc. (NYSE:NKE), Adidas and Under Armour Inc. (NYSE:UA).
