Dick's Plunges Into Negative Territory Following Announcement Of 2017 Goals

Shares of Dick's Sporting Goods Inc (NYSE: DKS) were trading lower by more than 2 percent shortly after Tuesday's opening bell, despite trading higher more than 1.3 percent during the pre-market session.

The company scheduled an Analyst Meeting for 10:00 AM ET on Tuesday to discuss its updated fiscal 2017 targets. A press release detailing the financial metrics were released prior to the meeting.

In the press release, the company stated that it expects 2017 revenue to be in a range of $8.7 billion to $9.0 billion. The projected sales data reflects a three year compounded annual growth rate of approximately 8 to 10 percent from 2014's $6.8 billion.

By 2017, Dick's expects to expand its operating margin by 80 to 130 basis points to 9.0 percent to 9.5 percent, from a non-GAAP operating margin of 8.2 percent on 2014. As a result, diluted earnings per share are expected to improve by an annual compounded growth rate of 12 percent to 16 percent through 2017.

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Driving growth is the "significant opportunity" the company sees in increasing its market share in the U.S. through growing its DICK'S Sporting Goods stores in new markets, while at the same time increasing its eCommerce penetration.

The company expects to add approximately 135 to 150 stores by 2017, bringing its total count to 735 to 750 stores. eCommerce sales are projected to grow over the same time period to $1.0 billion to $1.2 billion, from $628 million in fiscal 2014.

Finally, the company reaffirmed its first quarter 2015 outlook and expects to earn $0.49 to $0.53. For the full year fiscal 2015, the company still expects to earn $3.10 to $3.20 per share.