Dick’s Sporting Goods reports a net loss of £114.37 million in Q1 as Coronavirus shuts stores

Dick’s Sporting Good (NYSE: DKS) released its quarterly financial results on Tuesday that posted a 30% decline in same-store sales in the first quarter. The company attributed downbeat sales to the Coronavirus pandemic that pushed it into closing the nationwide retail stores to minimise the fast spread of the flu-like virus.

In terms of digital sales, however, the retailer reported an unprecedented 210% growth from 18^th March to the end of Q1. In the first quarter as a whole, online sales, as per Dick’s Sporting Goods, printed a 110% increase.

Shares of the company were 1.5% up in premarket trading on Tuesday. At £29.50 per share, the stock is currently about 25% down year to date in the stock market. Learn more about how do people make money on the stock market.

Dick’s posts a 31% decline in net sales in the first quarter

At £114.37 million that translates to £1.36 per share, Dick’s net loss in the quarter that ended on 2^nd May came in significantly higher than £45.86 million in earnings (48.65 pence per share) that it recorded in the same quarter last year. The retailer’s net sales tanked 31% in Q1 to £1.06 billion versus the year-ago figure of £1.53 billion.

According to Refinitiv, experts had forecast Dick’s Sporting Goods to print £1.16 billion worth of sales in the first quarter. Their estimate for loss per share was capped at 45.46 pence per share.

Dick’s have resumed operations at roughly 80% of its nationwide retail stores as of May end.

Dick’s same-store sales drop by 4% in the first 4 weeks of Q2

The company also highlighted on Tuesday that its same-store sales only dropped by 4% in the first 4 weeks of Q2. 44% of Dick’s stores remained closed during this period. As per CEO Ed Stack:

“As the leader in the sporting goods retail sector, our relationships with key brands have never been stronger and we are in a great place to support this demand.”

In terms of liquidity, Dick’s boasted £1.20 billion in cash and investment securities at the end of Q1. The company also accentuated outstanding borrowings worth £1.12 billion ascribed to its revolving credit line.

The Coraopolis-headquartered company did not give its full-year financial guidance for 2020 due to the rising Coronavirus uncertainty.

Dick’s performed largely upbeat in the stock market last year with an annual gain of about 50%. It is valued at £2.60 billion and has a price to earnings ratio of 10.92.