Dick's Sporting Goods cuts annual forecasts as athleticwear demand weakens
DKS•Consumer spending pressures weigh on demand
Consumers remain selective with discretionary spending amid inflationary pressures and economic uncertainty, posing risks to demand for sporting goods and athletic apparel.
A slowdown in consumer spending and a weakening job market have been weighing on demand for higher-priced athletic gear and outdoor equipment.
The company now expects annual earnings per share of $10.94 to $11.94, compared with its earlier forecast of $13.27 to $14.27.
Dick's cuts full-year sales and profit forecasts
Dick's Sporting Goods DKS.N cut its full-year sales and profit forecasts on Tuesday, as pressured discretionary spending amid a cautious consumer environment weighed on demand for sporting goods and athletic apparel, sending its shares down 13% in premarket trading.
The company now expects annual sales of $21.9 billion to $22.2 billion, compared with its earlier forecast of $22.1 billion to $22.4 billion.
"Not only were there fewer launches in the second quarter, but those launches performed below both industry and our expectations," said Ed Stack, the company's executive chairman.
"As a result, we are taking a more cautious view of the balance of the year," Stack added.
