{"id":2009718,"date":"2023-08-23T17:17:02","date_gmt":"2023-08-23T21:17:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dicks-sporting-goods-earnings-drop-23-percent-amid-surge-in-retail-theft\/"},"modified":"2023-08-23T17:23:15","modified_gmt":"2023-08-23T21:23:15","slug":"dicks-sporting-goods-earnings-drop-23-percent-amid-surge-in-retail-theft","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dicks-sporting-goods-earnings-drop-23-percent-amid-surge-in-retail-theft\/","title":{"rendered":"Dick&#8217;s Sporting Goods&#8217; earnings plummeted by 23% due to a sharp rise in retail theft."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdicks-sporting-goods-earnings-drop-23-percent-amid-surge-in-retail-theft%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2009718&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<p>Dick&#8217;s \u200cSporting Goods experienced a significant setback in\u200d the second quarter, with earnings plummeting by 23 percent. The company attributes this decline\u2062 to a surge in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dozens-of-looters-storm-a-california-nordstrom-employees-pepper-sprayed-physically-assaulted\/\" title=\"Dozens Of Looters Storm A California Nordstrom; Employees Pepper-Sprayed, Physically Assaulted\">organized retail theft<\/a> and \u2063its \u200cefforts \u2062to\u200c sell off excess inventory.<\/p>\n<p>This unexpected turn of events has forced the\u200c company to revise its \u2063earnings guidance for the year, as it <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dicks-sporting-goods-earnings-drop-23-percent-amid-surge-in-retail-theft\/\" title=\"Dick's Sporting Goods' earnings plummeted by 23% due to a sharp rise in retail theft.\">anticipates\u2064 lower \u200dannual profits due<\/a> to \u200cthe \u200cimpact of retail theft on its business.<\/p>\n<p>The \u200crelease of Dick&#8217;s Sporting Goods&#8217; second<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/disney-raises-prices-as-it-loses-300000-domestic-subscribers\/\" title=\"Disney+ increases prices as it loses 300K US subscribers.\">-quarter\u200c earnings report<\/a>\u2064 on Aug. 22 fell short \u200bof Wall Street investor expectations, causing a 24 \u2062percent drop in shares \u2062and erasing the\u2063 22\u2063 percent year-to-date gains.<\/p>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\">\n<div class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\"><a href=\"http:\/\/www.theepochtimes.com\/article\/dicks-sporting-goods-to-furlough-significant-number-of-its-40000-employees-3303859\">Dick&#8217;s Sporting Goods To Furlough &#8216;Significant Number&#8217;\u2064 of Its 40,000\u200d Employees<\/a><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">4\/8\/2020<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\"><a href=\"http:\/\/www.theepochtimes.com\/article\/dicks-sporting-goods-to-furlough-significant-number-of-its-40000-employees-3303859\"><\/a><\/div>\n<\/p><\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\"><a href=\"http:\/\/www.theepochtimes.com\/article\/dicks-sporting-goods-will-stop-selling-guns-at-440-more-stores-3266656\">Dick&#8217;s \u200dSporting Goods Will Stop Selling Guns at 440 More Stores<\/a><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">3\/10\/2020<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\"><a href=\"http:\/\/www.theepochtimes.com\/article\/dicks-sporting-goods-will-stop-selling-guns-at-440-more-stores-3266656\"><\/a><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>This marks the first time in nearly\u200d 20 years that\u2063 Dick&#8217;s has reported losses in \u200ba\u200d press\u200c release.<\/p>\n<h2 class=\"text-[24px] leading-[30px] font-bold\">Dick&#8217;s Sees\u200c Lower Results in Second Quarter<\/h2>\n<p>The company&#8217;s \u200dnet income for \u2063the second quarter, which ended on July \u200c29, was \u200d$244 \u200cmillion, or $2.82 per share, compared to $318.5 million, or $3.25 per share, in the previous\u200c year.<\/p>\n<p>Analysts surveyed \u200bby Refinitiv had expected earnings per share of $3.81, but the actual figure came in at $2.82. Similarly,\u2064 revenue fell \u2063slightly \u200cshort of earlier estimates, reaching $3.22 billion \u200dinstead \u200dof $3.24 \u2063billion. However, \u2064sales did increase from $3.11 billion to $3.22 billion compared \u2062to\u2064 the previous year.<\/p>\n<p>The company experienced a \u20621.8 percent \u200bgrowth in second-quarter comparable-store sales, driven by a 2.8 percent increase in transactions and continued market share gains.<\/p>\n<p class=\"paragraph inline-placeholder\">&#8220;While we posted \u2063another double-digit EBT [earnings before taxes] margin, our [second-quarter] \u2064 profitability was short of our <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-treasury-yields-edge-higher-on-russia-sanctions-announcement\/\" title=\"U.S. Treasury Yields Edge Higher on Russia Sanctions Announcement\">expectations due<\/a> in large part to the impact of elevated inventory \u2063shrink, an increasingly serious issue impacting many\u2062 retailers,&#8221; \u2062said Dick&#8217;s CEO and president, \u200cLauren Hobart.<\/p>\n<p>Despite the setback, Hobart expressed confidence in the company&#8217;s long-term growth \u200dopportunities, citing positive sales in\u2062 July. She stated, &#8220;The\u200c enthusiasm we have for our business and \u2063the confidence we have in\u200c our long-term growth\u200d opportunities have never been \u200dstronger.&#8221;<\/p>\n<h2 class=\"text-[24px] leading-[30px] font-bold\">Massive Losses\u2064 From Theft Behind Lower Earnings<\/h2>\n<p class=\"paragraph inline-placeholder\">The\u200c company \u2062attributes a significant portion of its poor earnings \u2063growth to shrink, which includes losses from theft, fraud, and damaged inventory.<\/p>\n<p class=\"paragraph inline-placeholder\">Retail chains across the United States have been grappling with a rise in theft over the past three years. In fact, retailers have experienced a 26.5 \u2062percent increase in large-scale \u2063theft \u200bcompared\u2063 to \u200dthe previous year. \u200dTarget\u2064 alone\u200d is projected to lose half \u200ca\u2063 billion dollars due to \u2064theft.<\/p>\n<p class=\"paragraph inline-placeholder\">Dick&#8217;s \u2063Sporting Goods \u200bis the first major national retailer to primarily attribute its financial struggles to theft. Retailers nationwide are struggling to combat both petty shoplifting and organized sprees of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/experts-mocked-after-saying-california-crime-spree-isnt-looting-but-rather-organized-robbery\/\" title=\"Experts Mocked After Saying California Crime Spree Isn\u2019t \u2018Looting,\u2019 But Rather \u2018Organized Robbery\u2019\">large-scale theft<\/a> that have resulted in empty shelves.<\/p>\n<p class=\"paragraph inline-placeholder\">In May,\u2063 Target warned investors about the rising theft in its\u200d stores, projecting a loss of half\u2064 a billion dollars.\u200c Dick&#8217;s CEO, Lauren Hobart, acknowledged the \u200cimpact of theft on the\u200c company&#8217;s shrink\u2064 and\u2063 emphasized the need for \u200ddecisive action to address the \u2063issue.<\/p>\n<p>The company&#8217;s \u2063Chief Financial Officer, Mr. Gupta, revealed that a\u2062 physical inventory count conducted \u2062before the\u200d school season uncovered the extent of the elevated shrink \u200blevels. The unexpected increase in shrink significantly impacted the second-quarter results.<\/p>\n<p>Despite the\u2064 challenges\u200d posed\u200c by theft, \u200dDick&#8217;s\u2062 remains committed to finding solutions. The company is \u2062considering \u2063revisiting \u2063its inventory recording methods\u2063 to better \u2064track and address\u200d the issue.<\/p>\n<h2 class=\"text-[24px] leading-[30px] font-bold\">Company Also Faces Losses From\u200b Excess Inventory<\/h2>\n<p>However, the\u2063 company&#8217;s losses\u2064 were not solely attributed to theft. The clearance\u2063 of excess \u2062store inventories\u200d through aggressive markdowns also contributed to the decline in\u200b earnings.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>plunged 23% as organized retail theft surged and excess inventory sales were attempted. Dick&#8217;s Sporting Goods reduced its earnings forecast for the year, cautioning that retail theft was damaging its operations and would result in diminished annual profits.<\/p>\n","protected":false},"author":327,"featured_media":2009719,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2009718","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2009718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/327"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2009718"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2009718\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2009719"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2009718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2009718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2009718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}