Sports Authority shares fell almost 17% for the week, closing at $5.59 on Friday. The drop was due to a company report that earnings from operations in the fourth quarter would come in at 46 cents to 49 cents a share, well below its previous expectations for earnings of 50 cents to 53 cents. The consensus estimate of analysts surveyed by Thomson First Call is 52 cents a share.
In the year-earlier period, the company posted earnings of 50 cents a share, excluding items, on revenue of $400 million.
TSA said the reduced operating earnings, when added to a one-time tax benefit of about $1.14 a share, and an impairment charge of about 8 cents a share, would result in per-share earnings of about $1.52 to $1.55 in the fourth quarter.
January comparable store sales are running essentially flat, but a soft holiday season resulted in a 4.5% same-store sales decline for the fourth quarter to date.
The company said it has adjusted inventory levels accordingly, and Q4 margins as well as year-end inventory and borrowing levels are expected to be in “fine shape.”
>>> These guys are lucky Coach Chucky won the Super Bowl. Imagine what comps would have looked like without that gift last in the quarter?
