Disappointing sales sink Dick’s shares
Dick’s Sporting Goods shares ended Tuesday down almost 18 percent, after the Findlay retailer said disappointing sales in its golf and hunting businesses hurt first quarter results and led to lowered projections for full year earnings. Dick’s posted a profit of $70 million, or 57 cents per share, in the three months ended May 3. That compares to $64.8 million, or 52 cents per share, a year ago. Excluding a one-time gain on an asset sale, Dick’s earned $61.3 million, or 50 cents per share. That missed analysts expectations by 2 cents.
Net sales rose 7.9 percent to $1.4 billion. Sales in stores open at least a year were up 1.5 percent, but below the company’s predictions that it would see a 3 to 4 percent increase. Sales in the company’s namesake Dick’s Sporting Goods stores that have been open at least a year rose 2.3 percent in the quarter, but dropped 10.4 percent in its Golf Galaxy stores.
The company now expects adjusted earnings per share in the range of $2.70 to $2.85 for the year, excluding a gain on the sale of an asset. That’s lower than earning projections of earnings in the range of $3.03 to $3.08 per share.
Locks and dams bill OK’d by U.S. House
Legislation that would free up millions of dollars in additional funding for long-delayed work on Monongahela River locks and dams was approved Tuesday by the U.S. House of Representatives, 412-4. The Water Resources Reform Development Act is expected to be voted on by the Senate Wednesday or Thursday.
4 Smashburger locations may be coming to region
Denver-based burger restaurant chain Smashburger announced an expansion push through franchise agreements in several markets. In Pittsburgh, the company said it has partnered with Expandable Technologies and has plans to open four new locations over the next few years.
UPMC vice president bound for WVU Hospitals
Albert L. Wright Jr., currently vice president of operations at UPMC Presbyterian Shadyside, has been named president and CEO of West Virginia University Hospitals. Mr. Wright, a pharmacist, will take over for retiring Bruce McClymonds in August.
Microsoft positions Surface as laptop replacement
Microsoft said on Tuesday it will produce a larger version of its Surface tablet to make the device more compelling as a laptop replacement. The Surface Pro 3 will have a screen measuring 12 inches diagonally, up from 10.6 inches in previous models.
Housing debt traps 10 million Americans
During the first three months of this year, 18.8 percent of homeowners with a mortgage — 9.7 million — owed more on their loans than their properties would sell for, according to online real estate database Zillow. Though that was an improvement from the 25.4 percent figure of a year ago, the share of such “underwater” homeowners is about four times the historic average.
From staff and wire reports