Dave & Buster's Entertainment Inc. (NASDAQ:PLAY) saw its shares plunge today after the restaurant and games venue operator cut its 2017 profit and sales outlook.
The Nasdaq listed company said it now expects 2017 net income to be US$108mln to US$110mln, down from previous guidance of US$110mln to US$112mln.
It added that revenue is now expected to be US$1.138bn to US$1.142bn, against a previous forecast of US$1.148bn to US$1.155bn, with the same-store sales guidance cut to a range of down 1.0% to down 0.7% from flat to up 0.75%.
The group’s said chief executive Steve King said: "As indicated on our fiscal third-quarter conference call, we had a slower-than-expected start to the fourth quarter."
He added: "We expected sales to improve during our seasonally strong weeks in December but instead trends softened further leading us to update our financial outlook for fiscal year 2017."
In early morning trade in New York, Dave & Buster’s stock price dropped by nearly 18% to US$46.31.