By Ben Glickman
Shares of Big 5 Sporting Goods took a hit on Tuesday as the company decided to reduce its dividend by 50%. This move caused the stock to drop by 13% in after-hours trading, following a slight decline of 0.1% at Tuesday's close. It has been a challenging year for the company, with shares down 20% overall.
Based in El Segundo, California, this sporting goods retailer cited softer consumer discretionary spending as the main reason behind their decision. Furthermore, they anticipate that this trend of weaker sales will continue into the fourth quarter.
In light of these circumstances, Big 5 announced a new quarterly dividend of 12.5 cents per share, a significant decrease from their previous payout of 25 cents per share.
The company's financials for the current year reflect the difficult market conditions. Big 5 reported a profit of $1.86 million, or 8 cents per share, in comparison to $6.37 million, or 29 cents per share, from the previous year. This stands in contrast to their initial earnings forecast of 10-20 cents per share.
Another notable figure is the year-on-year decline in same-store sales, which dropped by 8.2%.
Our Latest News
Air Canada Reports Q3 Profit, Beats Expectations
Air Canada reports a profit of 1.25 billion CAD in Q3, beating expectations with growth in international network and partnerships. Operating revenues and adjust...
Endeavour Mining Reports Strong Gold Production
Endeavour Mining meets gold production expectations for Q4, plans for future growth in 2024, and announces $200 million in dividends for the year.
Stronghold Digital Mining Sees Expansion Ahead of Schedule
Shares for Stronghold Digital Mining closed higher as the bitcoin mining company announces accelerated expansion and positive second-quarter results