Investing.com – Shares of Dick’s Sporting Goods sunk to an intraday low of $47.50 on Tuesday, its biggest one-day drop since November 2015, after the sporting-goods retailer issued weaker than expected forward guidance.
The retailer projected full-year 2017 earnings in the range of $2.65 to $3.70 a share, a notch below analysts’ estimates of $3.76 while like-for-like sales are expected to ease to between 2-3%, following a 3.5% rise in 2016.
The sporting goods retailer revealed better than expected earnings of $1.32 per share compared to analysts’ expectations of earnings of $1.30 per share, while comparable store sales increased by 5%, when compared to the previous quarter.
Revenues for the quarter were in line with analysts' expectations at $2.48 billion, up 10.9% from the same period last year.
The company suffered a $46m write down in the fourth quarter on the value of inventory that does not fit with its new merchandising strategy.
The company announced plans for a new merchandising strategy. "We will implement a new merchandising strategy aimed at rationalizing our vendor base and optimizing our assortment to deliver a more refined offering for our customers." said Edward W. Stack the company's CEO.
At its close of $48.08, Dick’s shares are down 9% year-to-date.