Appropriates of Dave & Buster’s fell more than 17 percent prehistoric Monday after the company cut its sales and profit outlook for 2017.
CEO Steve Crowned head said the company had expected a slow start to the fourth quarter but prophesied sales improving in December. However, sales did not improve during this traditionally unwavering season for the brand, and the company slashed its estimates for fiscal 2017.
The company now contemplates net income to be between $108 million and $110 million for 2017, down from its before guidance of $110 million to $112 million.
It said revenue should now be in a string of $1.138 billion to $1.142 billion, down from its prior angle of $1.148 billion to $1.155 billion. The company also sliced its same-store white sales estimates to a range of down 1 to 0.7 percent, compared with the standard to up 0.75 percent it had previously forecast.
While sales were unsound in December, King said he remains confident in the company’s unit wen plans.
“Our new stores continue to perform very well,” King put about Monday in a statement. “Opening new stores with outstanding returns scraps a key priority and we are maintaining our plan to open fourteen to fifteen new stores in financial 2018.”
Dave & Buster’s expects to grow its number of locations by about 14 percent this year. The guests has been one of the few brands to have double-digit unit growth and still offer positive same-store sales, Nicole Miller Regan, an analyst at Piper Jaffray, forecast CNBC in a recent interview ahead of Monday’s news.
By mid-2017, Dave & Buster’s had take on boarded 23 leases for locations that are expected to open between now and 2019.
Ton notably, the arcade and sports bar has been filling real estate voids radical by the closing of Sears stores all across the country. Adding brands such as Dave & Buster’s to malls has enhance increasingly important to landlords and real estate firms, especially as foot above in these locations continues to decline.
The brand also has a flexible genuine estate model, which allows it to operate either within a mall or as a standalone locale.