Gander Mountain Co. shares sank in early trading Friday, after the hunting and outdoor gear retailer missed third-quarter expectations.
Shares lost 93 cents, or 17 percent, to $4.56. Shares have traded between $16 and $4.25 in the past year and are off 54 percent in the past six months.
The company reported a third-quarter loss after the closing bell Thursday, while analysts were expecting a profit. Sales also missed estimates.
Warmer-than-usual weather in some regions softened sales of fall hunting items, the company said. Meanwhile, broader consumer demand has been hurt by rising energy costs, tight credit conditions and falling home values.
Separately, the company said it bought Internet and catalog company Overton's Inc. for $70 million in cash from private-equity firm Linsalata Capital Partners.
Friedman, Billings, Ramsey analyst Jeff Sonnek, in a client note, said the new acquisition will help smooth out some seasonality in Gander Mountain's outdoor business, because Overton's generates most of its revenue in the first half of the year.
Still, the analyst reiterated a "Market Perform" rating on shares.
"Unfortunately, this has turned into a 'show me' story, with the onus clearly on management to execute in fiscal year 2008," he wrote. He trimmed his target price to $6.50 from $10.
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