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Stock impact report

DICK's Sporting Goods' Stock: A Sell Due To Falling Margins [Seeking Alpha]

Dick's Sporting Goods Inc (DKS) 
Last dick's sporting goods inc earnings: 3/10 07:30 am Check Earnings Report
US:NYSE Investor Relations: investors.dicks.com
Company Research Source: Seeking Alpha
Margins have declined even as same-store sales rose, indicating a negative risk to earnings. The company's guidance for adjusted EPS has been cut, and concerns about declining consumer demand could lead to further cuts. Shares of DICK's Sporting Goods ( NYSE: DKS ) have continued to decline since reporting disappointing earnings in August. Last October , I recommended selling DKS given my expectation for earnings to fall; since this recommendation, shares have fallen 4% while the S&P has risen by 16%. Given that degree of underperformance, now is an opportune time to determine whether the selling is overdone. Given the negative risk to earnings, I would still recommend selling shares. In the company's second quarter , adjusted EPS fell 23% to $2.82 amid margin pressure even as revenue rose 3.6% to $3.2 billion with same-store sales up 1.8%. This EPS result missed consensus by . It is notable to me that margins declined meaningfully even as same-store sales rose, which is genera Show less Read more
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