Consumer
Dick’s Falls After Warning About Higher Theft, Cost Cutting
- Profit miss in second quarter blamed on ‘inventory shrink’
- Sporting-goods retailer has performed well during pandemic
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Dick’s Sporting Goods Inc. sank after cutting its profit outlook for the full year as the retailer deals with slowing growth and more theft at its stores.
Chief Executive Officer Lauren Hobart said earnings for the second quarter fell short of expectations due “in large part to the impact of elevated inventory shrink,” an industry term that refers to factors such as shoplifting, employee theft and damaged goods. Comparable-store sales, a key gauge of retail performance, also trailed analyst estimates in the period.