Dick’s Sporting Goods Inc. (NYSE: DKS) reported third-quarter 2015 results before markets opened Tuesday. The specialty retailer posted adjusted diluted earnings per share (EPS) of $0.45 on revenues of $1.6 billion. In the same period a year ago, the company reported $0.41 EPS on revenue of $1.53 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.47 and $1.64 billion in revenue.

Same-store sales for the third quarter rose 0.4%, with sales at Dick’s Sporting Goods stores up 0.7% and sales at Golf Galaxy stores down 2.9%. Online sales accounted for 8% of total sales for the quarter, up from 7.3% in the year-ago quarter.

On a GAAP basis the company posted net income of $47.2 million and EPS of $0.41. The totals included a litigation settlement charge of $7.88 million.

Dick’s expects to report consolidated adjusted EPS for the full fiscal year in a range of $2.85 to $3.00, compared with prior year adjusted EPS of $2.87. Same-store sales for the year are now expected to range from flat to up 1%, compared with an increase of 2.4% in the prior year. For the fourth quarter, EPS is now forecast in a range of $1.10 to $1.25, compared with $1.30 in the prior year. Same-store sales are projected in a range of down 2% to up 1% for the fourth quarter, compared with an increase of 3.4% in the same period a year ago.

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Analysts were expecting fourth-quarter EPS of $1.43 and full-year EPS of $3.19.

CEO Edward W. Stack said:

Our positive same store sales for the quarter reflected a strong back-to-school selling season tempered by slowing trends later in the quarter. Strength in athletic footwear, accessories and athletic apparel was moderated by the impact of record warm weather in more seasonal categories. … As we look to the fourth quarter, we anticipate a more promotional environment. Our focus will be to actively manage our inventory levels, while continuing to take the appropriate actions to win share and strengthen our business for the long term.

It’s that last bit that hit the stock Tuesday morning. Inventory was up 13.1% year over year, and the company said it is working with its vendors to reduce its exposure to slow-selling merchandise by returning product, canceling orders and securing markdown allowances.

Shares were down more than 16% in premarket trading to $34.15, below a 52-week range of $39.92 to $60.33. The low was posted on Monday. Thomson Reuters had a consensus analyst price target of $58.62 before the results were announced.

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