Retail giant Dick's Sporting Goods watched profits plummet 23% amid a drastic rise in organized retail theft, the company stated Tuesday.
The sinking profits were accompanied by slashes related to Dick's earnings guidance for 2023, and markdowns have been put in place to help move overstocked outdoor products, according to a report.Failing to meet Wall Street estimates for its top and bottom line, Dick's shares fell 24%, terminating a 22% year-to-date gain that came to an end with Monday's close.
Dick's has not included a reference to shrink in a press release or earnings call in close to two decades, according to the report. "Beyond shrink, we also took decisive action on excess product, particularly in the outdoor category, to allow us to bring in new receipts and ensure our inventory remains vibrant and well positioned," she added.
However, in spite of Q2 profit losses, Dick's anticipates an increase in gross margins for 2023 when compared to 2022.
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