Disaster Stock Of The Day: Why Dick's Sporting Goods Shares Are Diving Today $DKS

Benzinga

Dick's Sporting Goods (DKS) shares are trading lower after the company reported worse-than-expected Q2 results and lowered FY23 guidance.  #1 Morning Stock Show To Get You Ready For The Stock Market Open, PreMarket Gainers, Earnings This Week, Economic Data & More!  Benzinga PreMarket Prep 8:00AM ET- 9:00AM ET BenzingaTV on YouTube.

Transcript

00:00 Dick's Sporting Goods report here because this is an epic disaster.

00:05 DKS trading down 18%.

00:08 It was trading up ahead of the report last night and I was looking, I was like,

00:12 I don't know, I could show it was up two bucks ahead of the report.

00:15 I was like, do I take that?

00:16 I was like, I don't know.

00:17 It's not enough edge.

00:18 I didn't think, and you never know.

00:19 Sometimes these after hours traders seem to know more than they should, but this

00:23 was not the case on DKS because they pulled the rug and they have not even

00:28 stopped pulling it here yet.

00:29 Money match how they do.

00:31 Let's get to a Q2 adjusted EPS is $2 and 82 cents missing the $3 and 81 cent

00:39 estimate sales of 3.22 billion missed the 3.23 billion estimate Dick's Sporting

00:46 Goods comparable sales increased 1.8% versus a negative 5.1% year over year.

00:53 Uh, they reaffirmed 23 comparable sales outlook in the range of flat to positive

00:58 2%, but then stated in the earnings call that our Q2 profitability was short of

01:04 our expectations due to large part to the impact of elevated inventory shrink

01:10 and increasing serious issues.

01:12 That's impacting many retailers.

01:15 This came from the CEO, Lauren.

01:17 Just a mess.

01:18 I mean, the big miss on earnings, the miss on revenue, and then you look at

01:23 the lower guidance, 1150 to 1250 from analysts, that's what's way up at 1350.

01:28 So just a mess across the board, a messy, messy report.

01:31 And is this the official end of COVID?

01:34 I mean, think about, you know, we've talked about how there's a few of these

01:39 other retailers that we know everybody's know, but he's going to go inside.

01:42 We're just going to go outdoor sports.

01:43 And Dick's benefited tremendously from that incredible run up in 2020 from 2021.

01:50 When it went from $20 to $140 a share.

01:53 I think this quarter officially marks the end of that.

01:57 We're not going indoors.

01:58 We're just doing everything outside trade while the outside

02:01 trade appears to be over.

02:03 Uh, not the bad news is it's down 27 and a half bucks.

02:09 That's almost 19% at one 1930.

02:12 That's the bad news.

02:13 The good news is it hasn't made a loan for the year yet, uh, which could be

02:18 eminent the way it's trading right now.

02:20 So let's look at it this way.

02:21 The pre-market low, uh, where we just spiked to, uh, was one 1617.

02:28 Wow.

02:28 Little bit of an overshoot for me, uh, yearly low one 1855.

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