Now what: While Big 5's results were generally positive, a couple of factors could have contributed to the stock's decline on Wednesday. First, the company's guidance was far from stellar, with same-store sales expected to be in the negative low single-digit to positive low single-digit range during the first quarter. Earnings are expected to be in the range of a net loss of $0.05 per share to a net gain of $0.02 per share, compared to a gain of $0.11 per share during the first quarter of 2014.
Miller pointed to an extremely competitive and promotional retail environment in Big 5's earnings press release, and investors may be reeling from the announcement on Wednesday that Sports Authority, a privately held sporting goods chain, filed for bankruptcy. With Big 5 closing stores and posting meager same-store sales growth, investors may be concerned that the company could eventually suffer the same fate.
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The article Why Shares of Big 5 Sporting Goods Corp. Slumped Today originally appeared on Fool.com.
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