(Bloomberg) -- Dick’s Sporting Goods Inc. fell the most in a year after a higher full-year forecast failed to match expectations for a more sizable upgrade — a repeat of Foot Locker Inc.’s experience last week.
Shares of Dick’s fell as much as 11% in New York trading on Wednesday. The stock had risen 58% this year through Tuesday’s close.
The company sees comparable store sales rising 2.5% to 3.5% in 2024, up from the previous forecast that topped out at a 3% gain. Annual profit will reach as high at $13.90 a share, the company said.
Chief Executive Officer Lauren Hobart said on the company’s conference call that Dick’s customers are “holding up very well” and the company “saw growth across all income demographics.”
While the results were “solid,” Citigroup analyst Paul Lejuez wrote that he believed market expectations were higher. He also noted the shares rapid rise over the last month.
Bloomberg Intelligence analyst Lindsay Dutch said that the higher guidance seems not to fully reflect better-than-expected results in the second quarter, and so it suggests a slowdown in the second half of the year.
On Aug. 28, Foot Locker posted sales that beat market expectations, but shares fell 10% as investors were disappointed the sneaker chain reiterated its guidance for the full year, instead of raising it. Also, last week, Lululemon Athletica Inc. reported slowing sales in North America.
Dick’s has managed to sidestep some of the problems in the US athletic-wear industry that have plagued rivals as discretionary spending declines due to higher costs of living and interest rates.
The company has sought to win market share from rivals in recent years with a robust lineup of products from brands including Nike Inc. and New Balance Athletics Inc. Hobart is also looking to lure shoppers with a new retail concept that adds amenities like batting cages and equipment repairs.
(Updates with company, analyst comments from third paragraph.)
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