"The American sports goods retailer posted non-GAAP earnings of $1.32 per share, beating street expectation of $1.30 per share."
Shares of Dick's Sporting Goods are down over 8% in the afternoon trading session, the stock's single worst one-day performance since 2015.
This comes after the stock was up over 1% in pre-market trading on Tuesday morning following the company's better than expected fourth-quarter results.
The sporting goods retailer posted adjusted earnings of $1.32 per share, beating the Wall Street expectation of $1.30.
Diluted GAAP earnings stood at $0.81 per share, with a consolidated net income of $90.2 million.
The difference between the GAAP and non-GAAP figures was accounted by a $46 million inventory writedown and a $47 million asset impairment and store closing charge.
Same-store sales increased by 5% on a consolidated basis compared to the fourth quarter of 2015. The company, however, expected consolidated same-store sales to drop about 2 to 3% in 2017 as compared to 3.5% in 2016.
Revenues for the quarter came in at 2.48 billion, exactly in line with expectations, up 10.9% from same period last year. Net income for the 52 week period ending January 28, 2017, was $287.4 million, or $2.56 per diluted share.
The company also announced plans for a new merchandising strategy. "In 2017, we will continue to be aggressive and evolve our business," said Edward W. Stack the company's CEO. "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."
Management expects earnings per share in the first quarter of 2017 to be between $0.48 and $0.53, and consolidated same store sales to increase about 3 to 4% in the first quarter of 2017 (as against 0.5% in 2016).
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