Dick’s Sporting Goods’ shares slide after missing second-quarter sales

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Mannequins stand next to merchandise displayed for sale at a Dick’s Sporting Goods store in West Nyack, New York.

Shares of Dick’s Sporting Goods plunged by as much as 12 percent in premarket trading Wednesday after the retailer said it sold less merchandise during the second quarter than Wall Street forecast.

Comparable store sales also tumbled by a bigger-than-expected 4 percent during the quarter ended Aug. 4, which was partly blamed on changes in Under Armour’s distribution strategy.

“As expected, sales were impacted by the strategic decisions we made regarding the slow growth, low margin hunt and electronics businesses, which accounted for nearly half of our comp decline,” CEO Ed Stack said in a statement. “In addition, we experienced continued significant declines in Under Armour sales as a result of their decision to expand distribution.”

Stack said he was confident sales would turn around as those challenges lessen.

Here’s what Dick’s reported for the second quarter versus what Wall Street analysts polled by Thomson Reuters expected:

• Adjusted earnings per share: $1.20 vs. $1.06 expected
• Revenue: $2.18 billion vs. $2.24 billion expected

The disappointing sales results overshadowed the company’s improved earnings outlook. Dick’s raised its earnings-per-share guidance for the year to between $3.02 to $3.20 from the previous range of $2.92 to $3.12 a share.