Dick's Sporting Goods (DKS) Misses Q2 EPS by 99c, Cuts Guidance, Plans Business Optimization

(Updated - August 22, 2023 7:04 AM EDT)

Dick's Sporting Goods (NYSE: DKS) reported Q2 EPS of $2.82, $0.99 worse than the analyst estimate of $3.81. Revenue for the quarter came in at $3.22 billion versus the consensus estimate of $3.24 billion.

Business Optimization

We are conducting a business optimization of our organization to better align our talent, organizational design and spending in support of our most critical strategies while also streamlining our overall cost structure. As part of our review, we eliminated certain positions primarily at our customer support center on August 21, 2023 for which we expect to incur approximately $20 million of severance expense in the third quarter of 2023. Related cost savings are expected to be largely offset by strategic talent investments over the next twelve months.

While the Company has not committed to specific additional actions at this time, it currently expects the business optimization to be completed during fiscal 2023 and may result in additional one-time charges of $25 million to $50 million.

GUIDANCE:

Dick's Sporting Goods sees FY2023 EPS of $11.50-$12.30, versus the consensus of $13.49.

● Flat to positive 2.0% on a 52-week basis

For earnings history and earnings-related data on Dick's Sporting Goods (DKS) click here.

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