DICK'S Sees Q1 Earnings Above Market; To Buy Foot Locker In $2.5 Bln Deal; Stock Drops

(RTTNews) - DICK'S Sporting Goods, Inc. (DKS), an omni-channel sporting goods retailer, on Thursday announced preliminary first- quarter results, reporting earnings per share of $3.24 and adjusted earnings per share of $3.37, with comparable sales growth of 4.5%.

The Wall Street analysts on average expect the company to report earnings of $3.21 per share. Analysts' estimates typically exclude special items.

As previously announced, the company will report its first quarter results on May 28.

Separately, the company announced that it has entered into a definitive merger agreement to acquire Foot Locker, Inc. (FL), a footwear and apparel retailer. The deal implies an equity value of around $2.4 billion and an enterprise value of approximately $2.5 billion.

Lauren Hobart, President and Chief Executive Officer, said, "We are very pleased with our strong start to the year and our demonstrated sustained growth. The strength of our business puts us in a great position for our proposed acquisition of Foot Locker — a transformative step to accelerate our global reach and drive significant value for our athletes, teammates, partners and shareholders."

In the pre-market activity on the NYSE, DICK'S shares were losing around 8.4 percent to trade at $192.00.