Shares of Dick's Sporting Goods (DKS) were falling sharply, down 9.53% to $55.03 in Tuesday afternoon trading, after the sports retailer provided holiday quarterly guidance that failed to meet analyst expectations.
Dick's said that it expects fourth quarter earnings to range between $1.19 and $1.31 per share, below FactSet's $1.32 expectations for the period. The company also expects same store sales in the holiday quarter to increase between 3% and 6%, compared Wall Street expectations of a 4.2% increase.
Dick's CEO Ed Stack addressed the company's guidance during an earnings call with analysts this morning, saying: "So we've got a lot of outerwear both ski outerwear, cold weather outerwear, hunting outerwear and we're weather sensitive in the fourth quarter. And we're just concerned about what's going to happen from a weather standpoint."
BlackRock Fund Advisors, Dick's second largest institutional holder, has intermittently trimmed and added to its position in the company this year, but the firm lowered its position by 2.04% as of the end of its last reporting period in September, according to Fintel. BlackRock did not respond to TheStreet's request for comment.
In the third quarter, Dick's reported adjusted earnings per share of $0.48 on revenue of $1.81 billion, better than the $0.42 per share on revenue of $1.77 billion that analysts polled by FactSet forecast.
A slew of large cap retailers from Macy's (M) to the Gap (GPS) have pointed to falling mall traffic as a reason for sagging sales. The added pressure from TheStreet's Growth Seeker growth stock holding Amazon.com (AMZN) on brick and mortar retailers makes Dick's online strategy important.