Business

The NRO on Wednesday announced contracts worth billions of dollars over the next decade to a trio of satellite-imagery companies: Maxar, Planet and BlackSky.
The U.S. intelligence agency touted the contracts as “a historic expansion” of its acquisition strategy,
The NRO award comes under its Electro-Optical Commercial Layer program, which the agency says will support over 500,000 federal users over the next decade.

Maxar collected new satellite imagery of the southern Ukrainian port city of Berdyansk that reveals a Russian Alligator-class landing ship that is burned and partially submerged near one of the ports loading/unloading quays.
Maxar Technologies | Getty Images

The National Reconnaissance Office on Wednesday announced contracts worth billions of dollars over the next decade to a trio of satellite-imagery companies: Maxar, Planet and BlackSky.
Maxar, in a securities filing, said its 10-year EOCL contract is worth up to $3.24 billion, with a five-year base contract of $1.5 billion and optional contracts worth up to $1.74 billion. BlackSky’s contract is valued at up to $1.02 billion over 10 years, the company disclosed in a filing. Planet did not release the value of its NRO award on Wednesday, with a company spokesperson telling CNBC the delay is “because we remain in a quiet period,” as the company plans to report quarterly results on June 14.

NRO touted the contracts as “a historic expansion” of its acquisition strategy, noting the increasing availability of commercial companies’ imagery “increases our resilience and enables an integrated approach” to national security. The NRO is the U.S. agency that manages a wide breadth of satellite-intelligence capabilities, including operating its own classified satellites.
BlackSky stock soared 97% in trading to close at $2.33 a share, while Planet’s rose 14% to close at $5.73 a share, and Maxar’s climbed 18% to close at $28.86 a share.

An image from one of the company’s satellites shows Lower Manhattan in New York City.

The NRO award comes under its Electro-Optical Commercial Layer, or EOCL, program, which the intelligence agency says will support over 500,000 federal users over the next decade.
The EOCL deal has been long-awaited, with Maxar previously serving as the NRO’s sole provider of commercially acquired satellite imagery. While Maxar may be losing a lucrative monopoly, Wall Street analysts do not expect the new competition to hurt the company, given the growth in total addressable market for satellite imagery.

WATCH LIVEWATCH IN THE APP More

Kohl’s shares surged Wednesday on hopes that the retailer could still be bought amid a volatile market.
A Reuters report said bidders competing to buy Kohl’s are preparing to make binding offers, albeit lower than the indicative bids.
Earlier this year, Kohl’s rejected an offer of $64 a share from Starboard Value-backed Acacia Research for being too low.

The Kohl’s logo is displayed on the exterior of a Kohl’s store on January 24, 2022 in San Rafael, California.
Justin Sullivan | Getty Images

Kohl’s shares climbed 12% Wednesday, on hopes the retailer could still be bought following recent volatility in the market and a disappointing earnings report.
A Reuters report said bidders competing to buy Kohl’s are preparing to make binding offers, albeit lower than the indicative bids. Kohl’s had said last week that fully financed bids would be due in the coming weeks, and CEO Michelle Gass said she was “pleased” with the interested parties.

Reuters, citing people familiar with the matter, reported Wednesday that bidders plan to lower their offers by at least 10% to 15%.
Reuters said bidders include private equity firm Sycamore Partners, brand holding firm Franchise Group and a duo of Simon Property Group and Brookfield Asset Management. However, a person familiar with the matter told CNBC that Simon Property Group, the biggest U.S. mall owner, is not planning to make a bid for Kohl’s.
Representatives from Kohl’s and Sycamore declined to comment. Representatives for Franchise Group and Simon weren’t immediately available.
Retail stocks have taken a beating in recent days amid broader market volatility as quarterly reports from a number of retailers including Walmart, Abercrombie & Fitch and Kohl’s have revealed changing consumer behaviors amid inflation at a 40-year high and ballooning inventory levels.
Earlier this year, Kohl’s rejected an offer of $64 a share from Starboard Value-backed Acacia Research for being too low. Reuters reported Wednesday some bidders had indicated they were willing to pay at least $70 a share.

But investors have since lost some confidence that any deal would go through, given the state of the economy and the difficulty to secure financing in the current environment. Kohl’s shares opened Wednesday at $36.81, having fallen about 40% this month alone.
Kohl’s last week cut its full-year profit outlook, with Gass saying fiscal 2022 started off below her expectations. The company said it doesn’t anticipate headwinds from inflation pressures to abate in the near term.
The retailer also announced it was losing its chief merchandising officer and chief marketing officer. Searches for their successors are underway.
The turmoil for Kohl’s comes as the retailer faces amplified pressure from activist hedge fund Macellum Advisors to sell the business and shake up its board. Earlier this month, Kohl’s managed to fend off Macellum’s proposal for a new slate of directors.
Macellum has argued that Gass’s efforts to expand sales and win new customers haven’t been enough relative to its competition.
This isn’t the first time Macellum has put pressure on Kohl’s. The two struck a deal in April 2021 to add two directors from a slate pushed by a group of activists, including Macellum. Kohl’s also appointed one independent director, with the activists’ backing.
Gass, who assumed the CEO role at Kohl’s in May 2018, has tried a number of strategies to lure customers into stores, including signing a partnership with Amazon and adding Sephora beauty shops to hundreds of Kohl’s locations. 
On Wednesday morning, the company announced it will open 100 small format shops in the next few years in markets that Kohl’s doesn’t currently serve. It also said it plans to ramp up investments in all of its stores in the coming years, though it didn’t say how much money it plans to commit to these efforts.

WATCH LIVEWATCH IN THE APP More

Tom Cruise has generated more than $4.2 billion at the domestic box office, but he’s never had a film open to more than $100 million.
Cruise’s current domestic box-office record is 2005’s “War of the Worlds,” which snared $64.8 million.
Box-office analysts currently foresee a domestic opening of between $98 million and $125 million for the film.

Tom Cruise in “Top Gun: Maverick”
Source: Paramount

This weekend Tom Cruise has a chance to do something he’s never done before — open a film to more than $100 million at the domestic box office.
The prolific actor, who has made a name for himself as a fearless stuntman, has generated more than $4.2 billion at the domestic box office since 1981 but has never had a film open to more than $65 million.

After several pandemic-related delays, Paramount’s “Top Gun: Maverick” arrives in theaters this weekend with a 97% “Fresh” rating from Rotten Tomatoes and strong presale tickets.
“At this point, I’m seeing very little reason not to expect a domestic opening weekend well over $100 million, a mark that the film will probably reach in its first three days,” said Shawn Robbins, chief analyst at BoxOffice.com. “We’re not just talking about a new career best for Mr. Cruise, but also potentially some Memorial Day weekend records that may be going down.”
Robbins noted that there is a lot of pent-up demand for “Top Gun: Maverick.” Not only was it delayed several times due to Covid, but strong word of mouth from critics has generated renewed interest in the sequel to the 1986 original, a pop-culture touchstone.
Box-office analysts currently foresee a domestic opening of between $98 million and $125 million for the film.
Even if the film does not reach $100 million, it is still expected to become Cruise’s highest opening weekend domestically. His current record is 2005’s “War of the Worlds,” which snared $64.8 million, according to data from Comscore.

“We can mostly chalk that odd factoid up to the reality that Tom Cruise has rarely attached himself to blockbuster franchises commanding front-loaded debuts,” said Robbins. “The majority of his movies are built around star power and word of mouth generating long box office legs in a way that isn’t at the forefront of the industry’s mindset anymore.”
Robbins added that Cruise doesn’t often make sequels to movies. The exception being the Mission: Impossible franchise and a second Jack Reacher film in 2016. “Mission: Impossible – Fallout,” which was released in 2018, is Cruise’s highest-grossing film, making $220 million domestically and $791.1 million globally. “Mission: Impossible – Dead Reckoning Part One” is set to be released next year.
Additionally, $100 million box-office debuts have only become commonplace in the last decade, as ticket prices have risen significantly and fan-driven franchises such as Marvel and DC have enticed moviegoers to show up on opening weekend in droves. This year alone, as the movie theater industry tries to regain its legs after two years of pandemic restrictions, Warner Bros.’ “The Batman” and Disney’s “Doctor Strange in the Multiverse of Madness” opened at over $100 million.
Cruise’s legacy at the box office is about longevity, said Paul Dergarabedian, senior media analyst at Comscore.
“As one of the few stars who has built a career out of the long-term playability of his films, Cruise has changed the rules by not chasing the much coveted $100 million opening weekend, but rather the overall drawing power of his films over the long haul,” he said.
“To that end he has spent the last decade collaborating with great creative partners to produce some of the most entertaining movies to ever hit the multiplex,” Dergarabedian added.
Nearly half of Cruise’s 43 films have earned more than $100 million total during their runs at the domestic box office. His movies have generated more than $10.3 billion in ticket sales globally over the last four decades.
“As a movie producer Cruise understands the practical dynamics of strong box office results, but he also is plugged into the emotional connection that fans have with the visceral and cinematic power that only movies on the big screen can deliver particularly for his action-oriented films,” Dergarabedian said.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal owns Rotten Tomatoes.

WATCH LIVEWATCH IN THE APP More

If you’re grappling with the sting of higher-than-expected capital gains taxes for 2021 and losses in 2022, experts say there may be ways to soften the blow.
Filers paid hundreds of billions more in taxes for 2021, and surging capital gains may have been to blame, according to an analysis from the Penn Wharton Budget Model.
“Last year’s tax gains were brutal,” said Karl Frank, president of A&I Financial Services. “When you pair that with this year’s losses, investors have a double whammy.”

The U.S. Department of the Treasury building
Julia Schmalz | Bloomberg | Getty Images

Some investors may be grappling with the sting of higher-than-expected capital gains for 2021 and losses in 2022. But experts say tax-planning opportunities may soften the blow.
Individuals paid significantly more taxes this season, and the surge in capital gains in 2021 may be to blame, according to an analysis from the Penn Wharton Budget Model.

Adjusted for inflation, filers paid more than $500 billion in April 2022, compared to north of $300 billion in the years before the pandemic, based on data from the U.S. Department of the Treasury, the report shows. Payments dipped below $250 billion in May 2021.
More from Personal Finance:Borrowers on edge as Biden weighs action on student loan forgivenessStill missing your tax refund? You’ll soon receive 5% interestWhy 2022 has been a dangerous time to retire — and what you can do about it
These payments reflect taxes that weren’t withheld from paychecks — which often includes capital gains, dividends and interest — along with levies paid by so-called pass-through businesses, with profits flowing to owners’ individual tax returns.  
“It’s a striking increase,” said Alex Arnon, associate director of policy analysis for the Penn Wharton Budget Model, who worked on the analysis.

The Treasury in May reported a $308 billion surplus for April, a monthly record, with receipts hitting $864 billion, which more than doubled the previous year’s amount. 

There was a $226 billion deficit for April 2021, with lower receipts due to the one-month extended tax deadline.  

Capital gains taxes

Loading chart…

What’s more, investors with mutual funds in taxable accounts may have seen larger-than-expected year-end distributions.
The Wharton analysis also highlights higher volumes of trading over the past few years, which may have contributed to higher capital gains in 2021.

Trimming your tax bill

After soaring gains in 2021 and volatility in 2022, some advisors may be weighing tax opportunities.
“Last year’s tax gains were brutal,” said certified financial planner Karl Frank, president of A&I Financial Services in Englewood, Colorado. “When you pair that with this year’s losses, investors have a double whammy.”
One option to consider is selling losing assets to offset future gains, known as tax-loss harvesting. If losses exceed gains for the year, you can use up to $3,000 to reduce regular income taxes.

Don’t let the tax tail wag the investment dog.

Karl Frank
President of A&I Financial Services

For taxable accounts, check how much income assets create before making purchases. Generally, exchange-traded funds tend to be more tax efficient than actively managed mutual funds, Frank said.
Of course, asset location is also important, since tax-deferred and tax-free accounts shield investors from current-year capital gains.
However, “don’t let the tax tail wag the investment dog,” Frank warns. It’s important to consider your complete financial plan when choosing assets and accounts.

WATCH LIVEWATCH IN THE APP More

A good vegan milk needs to look like milk and taste like milk, whether its a fatty version, preferred by bakers, or a skimmed one, favoured by the health-conscious. And, for coffee-drinkers, it should ideally foam like the stuff from a cow. For years manufacturers have had trouble hacking this delicate imitation game. Rapidly rising revenues suggest that they are getting much better at it. In America alone, $2.6bn of plant-based milk was sold in 2021, up from $2bn in 2018. Pseudo-milks are only one category in the growing assortment of passable plant-based alternatives to animal products. There are now convincing versions not just of meat but of cheese, eggs and even prawns. Burger King and McDonald’s sell vegan patties; Chipotle has made a plant-based chorizo. Last year the world’s largest producer of canned tuna, Thai Union, launched a plant-based line. Growing sales show the growing taste for this type of foodstuff (see chart). bcg, a consultancy, reckons that global revenues from alternative proteins could reach $290bn by 2035—and that is a cautious estimate.Eager investors have poured into the business like oatmilk into a latte. Alternative-protein companies lapped up $5bn in investments in 2021, 60% more than in 2020. Oatly, a Swedish firm that makes plant-based milk, raised $1.4bn on its Nasdaq debut last year. Impossible Foods, which makes meatless burgers, raised $500m in November, valuing the firm at $7bn. In February Nestlé, a packaged-goods giant, acquired Orgain, which makes plant-based protein powder, for an undisclosed sum rumoured to be around $2bn. Can the feast last?One reason to be hopeful is that alternative proteins have come a long way since the 1980s, when Quorn, a fungus-based meat alternative, first hit supermarket shelves. Silk, an early soya milk, followed in the 1990s. Unlike those early products, which were neither terribly tasty nor particularly nutritious, the latest crop are often both. Clever processing improves texture, additives boost taste and a pinch of specially engineered peas and beans adds nutrients. Firms are experimenting with ever more novel ingredients in search of meat- and dairy-like properties that will attract ever more shoppers. Terviva, an American startup, is using the oil of pongamia, an Asian tree, to mimic butter. . ChickP, an Israeli firm, is using chickpea extracts to mimic the texture and nutritional value of eggs in mayonnaise. Firms are also getting better at turning such bounty into consumer products. There are now ways of using corn protein to make plant-based cheese alternatives melt and stretch. Better products and lower prices—the result of both improved manufacturing techniques and scale—have coincided with the rise of “flexitarians”, who forgo meat but not always. Some are trying to cut saturated fat for health reasons—a trend fuelled by the pandemic. Fitness fanatics on faddish diets want to develop bulging muscles without building up cholesterol. Concerns about animal welfare and greenhouse-gas emissions from rearing livestock are driving the climate-conscious to limit their animal-derived intake; producing a gram of beef generates 25 times as much carbon as producing a gram of tofu. For all these advantages, making a plant not taste like a plant requires work, and ultra-processed substitutes seldom match animal proteins in nutritional value. Plant-based junk food is still junk. Soya is a common allergen and can have a disruptive effect on hormones. Green-minded consumers are realising that plant-based does not necessarily mean sustainable. Farming almonds to make a milk-like drink, for example, uses huge quantities of water. As inflation rises, even diehard flexitarians may turn into plain old omnivores, and pick either the real deal (which is cheaper than faux animal proteins) or veg (which is cheaper still). Plant-based proteins are also a tough sell in giant markets like India, where diets are already plant-rich, or Nigeria, where meat eating is a sign of wealth. That limits their global appeal. And animal products, including milk, are better for children’s bone development and nurturing gut bacteria, though lab-grown versions of meat and dairy are becoming more nutritious.All this suggests that alternative proteins have far to go to replace the animal kind. The limitations may be weighing on the firms involved. Oatly’s market value has fallen by over 80% since its listing, partly because of production difficulties. That of Beyond Meat, whose burgers feature in McDonald’s McPlant sandwich, is down by a similar amount from its peak in 2019. Sales growth slowed in 2021 and losses widened to $100m in the first quarter of 2022, compared with $27m a year earlier. Plant-based foods may no longer a side dish in diets, but their makers remain one in the food business. ■ More

Fintech start-up Alloy is pledging to help maintain employee access to abortions for those who work in states that ban or restrict the procedure
A growing number of large employers, including Salesforce, Starbucks, Citigroup and Amazon have committed to providing travel benefits for abortion services
Analysts say trying to maintain abortion benefits nationally, including for workers in states where the procedure is banned or restricted, could become more complicated if Roe v. Wade is overturned.

Kim Nguyen felt a sense of pride last fall when her bosses at Alloy committed to pay travel expenses for workers in Texas if they needed to access abortion services, after the state passed new restrictions.
“These types of things, especially around equity, diversity, inclusion, access to reproductive rights, [are] front and center for me personally. And it’s so amazing that the company sees that as well,” said Nguyen, vice president of people at Alloy.  

The founders of the New York-based fintech start-up have pledged to expand the travel benefit, if the Supreme Court overturns Roe v. Wade.
“Our stance is always to think about how we can look after the folks who work at Alloy, if some other institution is not,” said Tommy Nicholas, Alloy CEO.
Since the leak of a Supreme Court draft ruling on Dobbs v. Jackson Women’s Health Organization — the case that would toss out Roe v. Wade — a growing list of large employers have pledged to maintain abortion access for workers and family members. Companies including Citigroup, Salesforce, Starbucks, and Amazon have said they will provide travel benefits for those who need to travel out of states where access is restricted or banned.

Starbucks to cover employees’ travel expenses for abortions, gender-affirming surgeries

Employers watch abortion ruling

Less than 10% of S&P 500 firms publicly disclose whether they cover abortion services as part of their health plans, according to a 2020 benefits analysis by Equileap, a data firm devoted to promoting gender equality. About half of those firms cover elective pregnancy termination, while a quarter specify that they would cover the procedure if the health of mother is at risk, or in cases of rape or incest. Now, though, many companies may be revisiting their policies.
“Most — not all — but most employers that recruit on a national level are trying to figure out ways to have a continuation of the medical service,” said Owen Tripp, CEO of Included Health, formerly known as Grand Rounds and Doctor on Demand. “The challenge is that they need to sort of put a process in place whereby an employee can raise their hand and say, this is something that I would like to take advantage of.”

At Alloy, the company’s health-benefits provider was not prepared to administer the travel program. So, employees will have to work directly with the company’s human resources team, which has designed a process with the finance department that will protect the worker’s privacy in the same way they would in regard to any other medical issues.  
Tripp of Included Health says large employers that his company works with have tapped the firm’s navigation service to help administer abortion travel benefits. But in some cases that’s all they’re doing.  
“There are a couple large employers that we work with that actually only want to cover the travel portion, but they’re not going to cover the medical benefit,” said Tripp. “I think you’re going to see some nuances in how employers tackle that issue.”

State bans

Analysts say maintaining abortion benefits for employees in states which limit or outlaw abortion could become more complicated legally for national employers if the high court overturns Roe v. Wade. Such a decision could trigger abortion bans in more than a dozen states, and possibly result in half of the U.S. banning or greatly restricting access to abortion services.
While the Employee Retirement Income Security Act, known as ERISA, gives national employers the ability to avoid some state health insurance regulations, a ban on a medical procedure doesn’t allow for similar workarounds.
“The heart of ERISA doesn’t grant an employer the ability to do something that’s otherwise illegal. So, if it is made illegal in the state to pursue or receive an abortion in that state … an employer’s benefit program wouldn’t be able to reimburse or pay for that,” explained Garrett Hohimer, director of policy and advocacy at Business Group on Health, which represents large employers.    
Beyond restrictions on access, the new abortion ban legislation in Oklahoma will give citizens the right to enforce abortion laws; it’s now the third state to allow the practice, joining Idaho and Texas. Others may follow.
Those citizen-enforcement clauses allow private individuals to sue anyone who facilitates an abortion, which could potentially include insurers and employers who cover the costs of procedures.
“Anybody that has invested in health insurance is going to have to go back to the drawing board and review where they stand. Because not only does coverage and denial policy become front and center, but also litigation — litigation against the plan for its determination of what’s appropriate, and what’s not,” said health-care consultant Paul Keckley, a former executive director of the Deloitte Center for Health Solutions.

Potential backlash

While a growing list of major employers have come out in support of maintaining access, most are waiting until the high court’s ruling to announce how they’ll handle abortion benefits. But that wait-and-see approach also sends a message, to some.
“I view that, and I think a lot of other people view that, as a decision in and of itself,” said Nicholas of Alloy.
As Disney executives discovered after Florida’s so-called “Don’t say Gay” bill, companies now risk pushback from all sides, whether they take a stand or not when it comes to hot-button social issues like sexual orientation and abortion.  
“Being a corporate citizen in America right now, you have to be able to define for yourself, your character in this country, and how you’re going to be perceived,” said Hohimer. “I don’t know that every employer is going to be treated fairly or revered for whichever side of this they come out on.”
The Supreme Court is expected to issue a ruling in the case of Dobbs v. Jackson Women’s Health Organization in June.

WATCH LIVEWATCH IN THE APP More

The average price for gasoline in the U.S. is at a fresh all-time high heading into Memorial Day.
Yet AAA predicts 39 million people will travel out of town this weekend.
If you are planning a road trip, consumer savings expert Andrea Woroch has some gas-saving tips to shield you from sticker shock.

Heading into the peak summer driving season, which kicks off on Memorial Day weekend, gasoline prices show no signs of slowing down.
The national average for unleaded gas hit a new high of $4.59 per gallon Wednesday, with all 50 states above $4 per gallon, AAA data shows. Gas prices are now $1.56 more than a year ago and $1.05 more than they were when the war in Ukraine started in February, according to AAA spokesperson Andrew Gross.

“That sent shock waves through the oil market that have kept oil costs elevated,” he said. “Domestically, meanwhile, seasonal gas demand is rising as more drivers hit the road, despite the pain they face paying at the pump.”

Although higher prices may prompt vacationers to take fewer trips and go shorter distances, AAA predicts more than 39 million people will go away this Memorial Day weekend. 
There’s still an appetite to travel, according to GasBuddy’s Summer Travel survey.
“We found that 58% of Americans plan to hit the road for a trip this summer, up from 57% last year, even faced with the highest gas prices ever,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
More from Personal Finance:Emergency savings take a hitRecession is ‘likely,’ former SEC chief economist saysIt’s a good time for young investors to put money in market

“What we did notice is that motorists will be traveling a bit less, with 65% taking only one or two road trips,” De Haan said.
The most common amount of time traveled by car will be between two to three and more than five hours, GasBuddy found.

6 simple gas-saving hacks

If you are planning to hit the road this weekend, there are ways to shield yourself somewhat from soaring prices at the pump. Here are consumer savings expert Andrea Woroch’s top tips:

Fuel up midweek. Beat the crowds and save by filling up sooner rather than later. Gas costs will continue to climb throughout the week and spike on Friday, so you’re better off getting gas now ahead of the rush, Woroch said. 
Get a tuneup. From properly inflated tires to checking the engine is running smoothly, a tuneup could be key to getting better gas mileage. Other tricks to maximize fuel economy include keeping the windows rolled up to reduce drag and setting cruise control when possible to avoid excessive breaking and accelerating.
Track gas prices. Apps such as GasBuddy, Gas Guru and AAA TripTik can track down the cheapest price per gallon between gas prices. This is especially helpful when trying to avoid those pricey gas stations right off the highway.
Pay with cash. The price per gallon can be 10 cents to 15 cents more per gallon for credit card transactions. Pay with cash instead to get the lower price or use a gas rewards credit card to earn cash back on those charges. CNBC’s Select has a full roundup of the best cards for fueling up based on your consumer habits.
Sign up for loyalty programs. In addition, loyalty programs, which many major gas station chains have, can help offset the price at the pump. Some grocery store chains may also offer cents-per-gallon rewards. For example, Kroger and Shop & Stop give fuel points for every $1 spent on groceries, which can be redeemed at participating gas stations. 
Stay closer to home. You don’t always have to drive far to get away. Try the RoadTrippers app to plan shorter road trips that are just as worthwhile. You may be surprised at all of the things to see and do within a short driving distance from home, Woroch said. 

Subscribe to CNBC on YouTube.

WATCH LIVEWATCH IN THE APP More

Dick’s Sporting Goods reported results that topped Wall Street’s expectations.
But the company isn’t immune to sky-high inflation and ongoing supply chain challenges. It cut its financial forecast for the full fiscal year.
CEO Lauren Hobart said she’s confident Dick’s will be able to “adapt quickly” amid uncertain macroeconomic conditions.

A Dick’s Sporting Goods store stands in Staten Island on March 09, 2022 in New York City.
Spencer Platt | Getty Images

Dick’s Sporting Goods on Wednesday reported results for its fiscal first quarter that topped Wall Street’s expectations, as shoppers spent money on golf clubs, soccer gear and athletic apparel from brands like Nike and Adidas.
But Dick’s isn’t immune to sky-high inflation and ongoing supply chain challenges. The company cut its financial forecast for the full fiscal year.

Shares of the retailer fell around 13% in premarket trade.
Dick’s now expects to earn between $9.15 and $11.70 per share, on an adjusted basis, this fiscal year, compared with a prior range of $11.70 to $13.10. Analysts had been looking for adjusted earnings per share of $12.56, according to Refinitiv estimates.
Dick’s is forecasting same-store sales to be down 8% to down 2%, versus prior expectations of down 4% to flat. Analysts were calling for a year-over-year decline of 2.5%, according to FactSet.
The company’s decision to lower its guidance comes after similar adjustments from Walmart, Target and Kohl’s, as these retailers cope with higher expenses that are eating into their earnings. Shares of apparel retailer Abercrombie & Fitch fell nearly 30% Tuesday after the company slashed its outlook for the year.
Dick’s President and Chief Executive Officer Lauren Hobart said in a press release that she’s confident the company will be able to “adapt quickly” amid uncertain macroeconomic conditions.

Here’s how Dick’s did in its fiscal first quarter compared with what Wall Street was anticipating, using Refinitiv estimates:

Earnings per share: $2.85 adjusted vs. $2.48 expected
Revenue: $2.7 billion vs. $2.59 billion expected

Dick’s reported net income for the three-month period ended April 30 of $260.6 million, or $2.47 per share, compared with net income of $361.8 million, or $3.41 a share, a year earlier. Excluding one-time items, the company earned $2.85 per share.
Sales fell about 8% to $2.7 billion from $2.92 billion a year earlier, but they were enough to top expectations.
Dick’s said its loyalty members accounted for more than 70% of sales. Its stores fulfilled more than 90% of transactions, including online purchases, as Dick’s made the most of inventory sitting in stock rooms.
The company reported inventory levels as of April 30 up 40.4% from a year earlier.
Dick’s shares have fallen roughly 38% year to date, as of Tuesday’s market close.
This story is developing. Please check back for updates.

WATCH LIVEWATCH IN THE APP More