Dick’s Sporting Goods shares plummeted nearly 16 percent after the sporting goods retailer missed Wall Street expectations and lowered its outlook for the year.

In the latest quarter, Dick’s said net income rose to $112.4 million, or $1.03 a share, from $91.4 million, or 82 cents a share, a year ago.

On an adjusted basis, quarterly profit was 96 cents per share, four cents below estimates from Thomson Reuters.

Helped by the expansion of its store network, sales rose 9.6 percent to $2.2 billion from last year. However, that also was short of analysts’ estimates.

Consolidated same-store sales rose 0.1 percent, far lower than the company’s forecast of 2 to 3 percent growth.

Weakness in hunting and licensed sports apparel, among other factors, hurt its results, the company said.

“By design, we will be more promotional and increase our marketing efforts for the remainder of the year, as we will aggressively protect our market share,” said Edward W. Stack, chairman and CEO, in the company’s earnings release. “We have updated our outlook to reflect these investments. We continue to believe retail disruption creates opportunities for us as we look long-term.”

Dick’s now expects earnings this fiscal year, on an adjusted basis, will be $2.80 to $3.00 a share.

Same-store sales for the year are now expected to be between flat to down at a low-single digit rate. In 2016, same-store sales rose 3.5 percent.

Source: Investment Cnbc
Dick's Sporting Goods shares crater on disappointing sales, poor outlook for the year