- Dave & Busters reported first-quarter same-store sales that fell short of Wall Street estimates.
- SunTrust Robinson Humphrey downgraded the stock to "hold," citing declining same-store sales and increased competition.
- Shares were trading down 21% early Wednesday.
- Watch Dave & Buster’s trade live.
Dave & Buster’s stock crashed Wednesday morning after the company posted disappointing same-store sales.
The company said sales at stores open at least a year dropped 0.3% versus a year ago, missing the 1.6% rise that analysts surveyed by Bloomberg were expecting.
Meanwhile, diluted earnings of $1.13 a share just missed the consensus estimate of $1.14, while revenue jumped 9.5% to $363.6 million, missing the $371.72 million that analysts were anticipating.
"We delivered robust revenue and EPS growth and our new store performance remained strong, but comparable store sales were below expectations largely due to the Easter shift, which proved unfavorable this year," said CEO Brian Jenkins in a press release. "We are fully committed to executing on our four strategic priorities to strengthen the brand and remain focused on creating significant shareholder value over the long term."
During the quarter, Dave & Buster’s bought back $63.5 million worth of shares .
Looking ahead, the company see full-year revenue of $1.365 billion to $1.39 billion, down slightly from $1.37 billion to $1.4 billion.
Following the results, SunTrust Robinson Humphrey downgraded the stock to "hold" and lowered its price target to $47 from $64, citing weaker than expected comparable stores sales, increased competition, and new stores sales cannibalization.
Dave & Busters is down 5.07% this year.
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