Dick's Sporting Goods is getting clobbered after same-store sales miss

Scott Dalton / InvisionThe Under Armour shop at the new DICK’S Sporting Goods store at Baybrook Mall in Friendswood, Texas on Tuesday, October 18, 2016.

Dick’s Sporting Goods’ stock is down 12% at $US42.10 a share after the company reported same-store sales that were less than analyst estimates.

Comparable sales for the quarter climbed 2.4%, missing consensus forecasts of 3.6% growth. The sporting goods and apparel retailer also trimmed its forecast for full-year 2017 same-store sales.

“Despite a challenging retail environment, we realised growth across each of our three primary categories,” chairman and CEO Edward W. Stack said in a statement. “Looking ahead, we continue to evaluate and adjust our business model, and are taking actions to reduce our expense structure in order to fund and develop our longer-term strategic initiatives.”

Dick’s reported an adjusted gain of $US0.54 per share for the period, matching consensus estimates. The company also reported net revenue of $US1.83 billion, which also met analyst forecasts.

The push lower in Dick’s shares is bad news for investors who were expecting a further recovery from a more than eight-month low in late March.

NOW WATCH: Scientists figured out why a giant crack in Antarctica is growing so fast, and it points to an even bigger problem

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.