Shares of Big 5 Sporting Goods experienced a sharp decline in early trading on Wednesday after the company adjusted its full-year earnings guidance and expressed concerns about slumping sales. The stock price plummeted by more than 10%, reaching a pre-market trading value of $4.66. Over the past year, shares have fallen an alarming 49%.
Based in El Segundo, California, this sporting-goods retailer disclosed on Tuesday evening that it now anticipates a loss per share ranging from 38 cents to 40 cents, in contrast to its previous projection of a loss between 20 cents and 35 cents per share.
Big 5 reported a significant decline of 17.7% in same-store sales for the fourth quarter, along with a deterioration in merchandise margins. Chief Executive, Steven Miller, attributed these disappointing numbers to unusually warm winter weather conditions, which adversely impacted sales. Specifically, the absence of snow caused winter-related product sales to plummet by nearly 40%.
Miller also mentioned that non-winter product sales were down approximately 10%, aligning with previously-issued guidance. The company plans to release its full report in February, where further details will be provided.