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.