Dick’s Sporting Goods Inc. reported a solid first quarter that beat estimates, but lowered guidance for the full year. The stock was rising more than 2 percent to $39.20 in early trading on the beat.

For the first quarter ending April 30, Dick’s delivered diluted earnings per share of 50 cents, which topped the FactSet estimate for 49 cents, but was lower than last year’s earnings of 53 cents per share. Net income of $56.9 million dropped from last year’s $63.3 million.

Net sales for the quarter increased 6.1 percent to $1.7 billion from $1.5 billion a year earlier. Consolidated same store sales increased 0.5 percent.

“We are pleased to have delivered first-quarter earnings at the high end of our expectations in a challenging retail environment,” said chief executive officer Edward Stack. The company had guided earnings to be in the range of 48 cents to 50 cents. Gross margins fell slightly from 29.96 percent in 2015 to 29.86 percent

Stack also touched on the impending liquidation of competitor Sports Authority. He added, “The consolidation that is occurring among sporting goods retailers is creating a unique time in the industry. Given the expected near-term liquidation activity in the market, we have adjusted our guidance to contemplate this dynamic.”

Looking ahead, the guidance for the second quarter is for earnings per share to be in the range of 62 to 72 cents. The FactSet estimate was for 78 cents per share. Consolidated same-store sales for the quarter are forecast to be in the range of negative 4 percent to negative 1 percent.

Dicks forecast that earnings per share for the year will be in the range of $2.60 to $2.90. The Capital IQ estimate is for $2.87, so the range is skewed to the low side of this estimate. Consolidated same stores sales for 2016 are forecast to be in the range of negative 1 percent to positive 1 percent.

The company plans to open 36 new Dick’s Sporting Goods stores and relocate nine stores during 2016. The company also plans to open nine Field & Stream stores and two Gold Galaxy stores this year.

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