Dick’s Sporting Goods Inc. (NYSE:DKS) stock fell Wednesday despite strong sales growth and continued momentum across its core sports retail business.

Investors focused on margin pressure even as the retailer highlighted accelerating improvements at Foot Locker and rising consumer demand tied to major global sporting events.

Quarterly Results

The company reported first-quarter adjusted earnings of $2.90 per share, missing the analyst consensus estimate of $2.93 per share. Quarterly sales rose 62.7% year over year to $5.17 billion, topping Wall Street expectations of $4.97 billion.

Dick’s Sporting Goods said Foot Locker’s Fast Break initiative expanded to about 100 stores globally during the first quarter. The company expects the program to reach nearly 250 stores by the back-to-school season.

“We’re investing from a position of strength and playing offense for the long term, widening the gap between us and the rest of the industry,” Executive Chairman Ed Stack said.

“Our Fast Break initiative, our capital light store remodel program, is delivering exceptional results, with double-digit comps and merchandise margin improvement as we rapidly scale toward approximately 250 stores ...