Dicks’s Sporting Goods (DKS) stock tumbled more than 20% Tuesday morning after the sporting goods retailer said organized retail crime has cut into its profits.
“Our Q2 profitability was short of our expectations due in large part to the impact of elevated inventory shrink, an increasingly serious issue impacting many retailers,” Dick’s CEO Lauren Hobart said in the company’s second quarter earnings release before the bell on Tuesday.
The company’s adjusted earnings per share of $2.80 in the second quarter came in about a dollar short of analysts expectations for $3.81.
Dick’s also cut it’s full-year profit outlook due to the rise in retail crime. Dick’s now sees full-year adjusted earnings per share in a range of $11.50-$12.30, down from a range of $12.90-$13.80.
The company’s earnings conference call is slated to begin at 10:00 a.m. ET.
“This is an issue that has negatively impacted many retailers, but has not been called out by DKS previously,” Wedbush analyst Seth Basham wrote on…
2023-08-22 08:35:00
Link from finance.yahoo.com
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