Dick’s Sports Goods Profits in 2025 are expected to be well below Wall Street expectations, making it the latest retailer to forecast the coming year as consumers tariffs, inflation and concerns about a potential recession, it said Tuesday.
Executive Chairman Ed Stack said in an interview with CNBC that the company’s access to Chinese, Mexico and Canada procurement is very small, but it recognizes that a decline in consumer confidence may affect spending.
“I do think it’s just an uncertain world,” Stack said. “What happens from a tariff standpoint? You know, what happens to consumers if the tariff is reached and it goes up the way it can?”
Stocks fell about 5% in listing trading.
Despite weak guidance, sporting goods retailers have released their best holiday quarter. According to StreetAccount, its comparable sales rose 6.4%, far exceeding the 2.9% increase that analysts expected.
According to an LSEG survey of analysts, Dick’s performance in the fourth quarter of fiscal year compared to Wall Street expectations:
- Earnings per share: $3.62 vs. $3.53 Expected
- income: $3.89 billion vs. $3.78 billion
The company reported net income at the end of the three-month three-month end was $300 million, or $3.62 per share, compared with $296 million, or $3.57 per share a year ago.
Sales rose to $3.89 billion, up 0.5% from $3.88 billion a year ago. Like other retailers, Dick has benefited from an additional week in the same period last year, which is biased towards comparison. But unlike many of its peers, Dick still managed to grow sales and profits this quarter, even if sales are less than a week.
According to LSEG, Dick expects earnings per share to be between $13.80 and $14.40, far below Wall Street’s estimate of $14.86. According to LSEG, it expects net sales to be between $13.6 billion and $13.9 billion, which is estimated at $13.9 billion at the high end. According to StreetAccount, Dick expects comparable sales to grow by 1% to 3%, while an estimated 2.5%.
After various other retailers’ weaker forecasts for the quarter or the previous year, the revenue outlook for revenue is frustrating due to concerns about gliding consumer confidence and the impact of tariffs and inflation on spending.
Some retailers accuse an inappropriate February of a weak start in the current quarter, but most people also recognize that they also operate in a difficult macroeconomic context and are more difficult than ever to predict consumers’ pivotality. In February, consumer confidence Slide to the lowest level Since 2021 Work Report It was weaker than expected, but the unemployment rate was ticked. Over the past few years, a strong job market has led many economists to enter Eliminate the focus About the rise Credit card delay and debt, but these cracks may be deeper if unemployment continues to increase.
Monday, some of these issues Triggered a stock market sell-offafter prolonging the loss S&P 500 Three negative numbers are released in succession. this Nasdaq Composite Materials I’ve seen the worst day since September 2022, and Dow Jones It has lost nearly 900 points since November 1, 2023 and closed its 200-day moving average for the first time.
CEO Lauren Hobart said in a press release that the company’s guidance “reflects a strong confidence in our strategic and operational power” but also considers a “dynamic macroeconomic environment.”
Additionally, Dick plans to invest in his “sports house” concept and e-commerce plans over the coming year, which is also expected to make the profit trade-off. The sprawling 100,000 square feet store is the company’s growth area, including features such as climbing walls and runways.
Over the next year, Dick plans to spend $1 billion on a net basis to build 16 additional gym houses and 18 outdoor house locations that use some experimental elements of sports houses but can fit the size of a traditional Dick store.
The strategy is a strong point in sports in the country and is expected to be a headwind for the business. The 2026 World Cup will be held in North America, and the women’s sports are More popular than ever Consumers are increasingly focused on health and wellness.
“From a sports perspective, we’re going to spend a little while in the next three to four years, and I think that will fix the exercise on steroids,” Stack said. “We are now entering the exercise moment and in the next few years we’re going to invest a lot in that exercise moment because that will continue until (2030) or even surpass.”
– Other reports from CNBC’s Courtney Reagan
