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DICK'S slides after earnings miss and warns of lower margins ahead
The retailer cut full-year non-GAAP EPS guidance to $11–$12 from $13.50–$14.50 and said margin pressure should persist through at least Q4.
Bearish “death cross” technical signals have appeared for several stocks, including DICK'S Sporting Goods, after the company reported an earnings miss and moved to lower its outlook amid ongoing margin pressure. The pattern typically occurs when a stock’s 50-day moving average crosses below its 200-day moving average, a setup that often captures investors’ attention.
MarketBeat Ratings reports that DICK'S posted earnings per share of $3.53, below the $3.74 consensus, and revenue of $5.59 billion versus $5.64 billion. The earnings miss was the company’s second consecutive quarter, which management attributed to profitability pressure in its promotional footwear and apparel segments.
Following the results, DICK'S lowered its full-year non-GAAP EPS guidance to a range of $11–$12 from $13.50–$14.50. The company also said margin pressure is expected to persist through at least Q4, with Q3 expected to be the most pronounced, citing aggressive discounting, excess inventory, a more cautious consumer, and ongoing geopolitical concerns.
In retail peers, the sell-off described in the coverage was sharp, with DICK'S shares gapping down nearly 31% in a single session after the report. The article also notes the retailer’s stock moved closer to a death cross after the post-earnings drop, as its 50-day moving average crossed below its 200-day moving average later that week.