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Why Shares of Big 5 Sporting Goods Corp. Slumped Today

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.

Timothy Green has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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