Dick’s Sporting Goods plunge on same-store sales disappoint

Dick’s Sporting Goods, Inc. (NYSE: DKS) share value fell Tuesday morning as the company reported financial results for the first quarter of 2017. The sporting goods retailer had reported same-store sales that were below analyst estimates. Comparable sales for Q1 rose 2.4%, below forecasts of 3.6% growth. The company has lowered its forecasts for fiscal year 2017 same-store sales.

In a statement, CEO and chairman Edward W. Stack said “Despite a challenging retail environment, we realized growth across each of our three primary categories.” “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.”

Although Stack is optimistic about the future and the company’s plans to improve its online business and merchandising strategy, he said that Dick’s continues to “evaluate and adjust” its business model and is looking to reduce expenses to fund longer-term initiatives.

The sporting goods retailer share value fell as low as $40.30 on Tuesday.

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