Dick's Sporting Goods Clocks 7.5% Sales Decline In Q1; Cuts FY22 Outlook

Dick's Sporting Goods Inc DKS reported a first-quarter FY22 sales decline of 7.5% year-over-year to $2.70 billion, beating the consensus of $2.59 billion.
Comparable store sales decreased 8.4% versus 117.1% growth a year ago.
The gross profit margin contracted 83 basis points Y/Y to 36.47%. The operating margin contracted 273 basis points to 13.57%, and operating income for the quarter fell 23% to $366.5 million.
The company held $2.3 billion in cash and equivalents as of April 30, 2022. Total inventory at the end of Q1 increased 40.4% Y/Y.
Adjusted EPS of $2.85 beat the analyst consensus of $2.47.
The company's Board of Directors declared a quarterly dividend of $0.4875 per share, payable in cash on June 24, 2022, to stockholders of record on June 10, 2022.
Outlook: DKS reduced its FY22 outlook to reflect the impact of evolving macroeconomic conditions. It sees FY22 adjusted EPS of $9.15 - $11.70 (prior view $11.70 - 13.10) versus the consensus of $12.56.
The company expects FY22 comparable store sales of negative 8% to negative 2% (prior view negative 4% to flat).
Price Action: DKS shares are trading lower by 7.01% at $66.25 on the last check Wednesday.

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