Dick's Sporting Goods (NYSE:DKS) is expected to report Q3 earnings before market open Thursday, November 20, with a conference call scheduled for 10:00 am ET.
Analysts are looking for a profit of 7c on revenue of $916.91M. The consensus range is 1c to 9c for EPS, and revenue of $864.46M to $970.8M, according to First Call. In August, the company forecast Q3 EPS ex-items 4c to 8c and same-store sales down 5% to down 2%. Retailers have had many challenges as consumers cut back on discretionary spending amid rising unemployment and food prices, as well as declining home values. In a November 11 note to clients,
Wedbush Morgan analyst Jeff Mintz said that the current consumer slowdown is likely to impact the company's ability to achieve longer-term growth expectations as consumers cut down on their spending and developers build fewer new retail centers. At the same time, Credit Suisse analyst Gary Balter said that while the company has been hurt by a number of factors and near-term results are likely to get worse, over time the stock "should work." Balter believes Dick's is one of the few growth companies left in hardline retailing and says some smaller store are likely to close in this weak economy, which would leave Dick's in a "prime position" when things normalize. Barclays analyst Michael Lasser notes that continued weakness in the consumer spending market was probably not reflected in the company's outlook for the quarter.