What: Shares of specialty retailer Cabela's (NYSE:CAB) slumped on Thursday after the company reported disappointing third-quarter results, missing analyst estimates across the board while cutting guidance and announcing a restructuring initiative. The stock closed the day down about 17%.

So what: Cabela's reported quarterly revenue of $926.5 million, up 4.6% year-over-year but about $45 million shy of the average analyst estimate. Comparable-store sales declined by 4.2%, while U.S. comparable-store sales fell by 3.3%, driven by weakness in fall apparel and footwear. Core categories, such as camping, powersports, and firearms, performed well, but this wasn't enough to offset weakness elsewhere. Direct revenue declined by 7.9% year-over-year, while financial services revenue rose 13.3%.

Cabela's adjusted earnings came in at $0.71 per share, down 12.3% year-over-year and two cents shy of analyst expectations. An 11.3% year-over-year rise in selling, general, and administrative expenses, as well as $5.6 million of restructuring charges, weighed on the company's bottom line.

Now what: With revenue in the third quarter coming in lower than expected, the company adjusted its guidance for the full year. Revenue is now expected to grow at a high-single-digit rate compared to 2014, with adjusted EPS expected to be approximately flat. At the end of the second quarter, the company had guided for a low-double-digit revenue growth rate and a high-single-digit to low-double-digit growth rate for adjusted EPS.

In an effort to cut costs, Cabela's announced a restructuring program along with its earnings report. The company plans to reduce operating expenses as a percentage of revenue by 75 to 150 basis points over the next three years, in addition to reducing working capital and selling unproductive assets.

Three months ago, Cabela's was confident in its full-year outlook, making the drastic reduction in earnings guidance following the third quarter even more disappointing for investors. Shares of Cabela's have now been cut in half since the beginning of 2014, and with growth being driven mainly by opening new stores, the company will need to convince investors that its long-term growth story is still intact.