Dick’s Sporting Goods Inc.’s stock tumbled 22% Tuesday, after the retailer’s second-quarter profit missed Wall Street’s consensus estimate by a wide margin, while sales also fell short, and the company squarely blamed theft for its woes.
It was the company’s first earnings miss in three years. The last time Dick’s missed the profit and sales consensus estimates was in April 2020, when it was reporting first-quarter earnings for that year.
“While we posted another double-digit EBT [or earnings before tax] margin, our [second quarter] profitability was short of our expectations due in large part to the impact of elevated inventory shrink, an increasingly serious issue impacting many retailers,” said CEO Lauren Hobart in a statement.
Source: Market Watch
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