Shares in Dick's Sporting Goods tumbled more than ten per cent today after the US sport retail giant's sales grew less than expected in the first quarter.
For the quarter to 29 April, net sales grew to $1.83bn (£1.42bn) from $1.66bn the previous year, missing Thomson Reuters' consensus of $1.84bn.
Same-store sales, the metric Wall Street monitors for retail stocks, lifted 2.4 per cent, falling short of FactSet analysts' expectations of 3.5 per cent growth.
Shares in the firm plunged 13.12 per cent to $41.33 in US morning trading, setting the firm on track for its biggest one-day decline in three years.
Why it's interesting
Dick's warned it faces a "challenging retail environment" and said it will "evaluate and adjust" its business model going forward as it focuses on cutting costs and streamlining operations.
In the second quarter, the company plans to open 13 new stores and increase same-store sales by around two to three per cent.
What Dick's said
Edward Stack, chairman and chief executive of Dick's Sporting Goods, said:
“Despite a challenging retail environment, we realised growth across each of our three primary categories of hardlines, apparel and footwear, and were pleased with the performance of our newly relaunched eCommerce site.
"We remain optimistic as we drive profitable growth on our new eCommerce platform, make marked progress on our new merchandising strategy and continue to capture market share."
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.