CORAOPOLIS, Pennsylvania — Shares of Dick's Sporting Goods plunged to a four-year low Tuesday after the retailer cut its earnings outlook for the year after reporting disappointing third-quarter results.
The sporting goods company now expects full-year earnings between $2.85 per share and $3 per share, down from its previous forecast between $3.13 per share and $3.21 per share. Analysts expected earnings of $3.18 per share, according to FactSet.
The company said its athletic clothing and footwear sold well during the third quarter, but its seasonal items did not because of the warm fall weather. Sales at stores open a year, considered an important measure of a retailer's health, rose 0.4 percent.
The Coraopolis, Pennsylvania-based company said it is working to reduce its inventory by returning products or canceling orders. Inventory increased 13 percent in the quarter from a year ago, the company said.
For the third quarter, Dick's reported net income of $47.2 million, or 41 cents per share.
Earnings adjusted for non-recurring costs were 45 cents per share, falling short of Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of 46 cents per share.
The company reported revenue of $1.64 billion in the period, which also missed Street forecasts. Ten analysts surveyed by Zacks expected $1.67 billion.
Shares of Dick's Sporting Goods Inc. fell $5.64, or 13.8 percent, to $35.17 in morning trading Tuesday. They fell as low as $33.87 in earlier trading, the stock's lowest point since October 2011.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on DKS at http://www.zacks.com/ap/DKS
Keywords: Dick's Sporting Goods, Earnings Report