Dick's Sporting Goods stock tanks as retail thieves snatch profits

[mahatmakanejeeves]

Dick's Sporting Goods stock tanks as retail thieves snatch profits

Josh Schafer · Reporter
Tue, August 22, 2023 at 9:35 AM EDT · 2 min read

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.

{snip}

Organized retail crime has been a drag across the sector for more than year. ... Target (TGT), Best Buy (BBY), Rite Aid (RAD), and Dollar Tree (DLTR) have all highlighted "shrinkage," which includes theft, as a factor weighing on profits. ... In 2022, Target said it lost $400 million in profits due to inventory shrinkage. Last week, Target, Home Depot (HD), and Walmart (WMT) all called out shrink on their earnings calls.

{snip}

[bucolic_frolic]

1. Trump has everyone focused on stolen elections but it's retail that's being plundered

[RKP5637]

2. When I was a kid this was a rarity, now FFS it seems a cost of doing business. n/t

[jimfields33]

3. This is a big deal and should be taken seriously by everyone

It affects us all in higher prices. But the worst is the closing of stores. We’re seeing it with Walgreens. Soon we may only have Amazon if this keeps up.

[Auggie]

4. I expect home invasions will be next ...

But targeted to large estates, McMansions, new developments ...

[RKP5637]

5. Or possibly some smaller ones? that don't have much security ... possibly easy targets.

One of my friends said way back, don't gussy your house up too much on the outside, you'll be a target. And another said, out of sight, out of mind for breaking in.

[Auggie]

6. I guess anybody and everything is a target these days

In the S.F. Bay Area thieves are using Bluetooth to find tech -- phones, tablets, notebooks -- in parked cars. I posted this in the California forum a while back.

Any smartphone can scan for Bluetooth signals, which means that if a phone is close enough to someone’s stashed cell phone, iPad or laptop, thieves who walk up to a car can detect its presence in just a matter of seconds, said Rob Enderle, a technology analyst and consultant.

Post here: https://www.democraticunderground.com/104032345

[MichMan]

9. People defending their homes against intruders won't just stand by while they get robbed blind

Many of the homeowners might be armed.

[RKP5637]

10. Yep! n/t

[everyonematters]

7. This is an indication that poverty is up.

Some of it may be organized crime, but most of it is poverty connected. The Republican remedy will be more people in jail. You can't jail yourself out of poverty connected cirme; you have to reduce poverty.

[MichMan]

8. People are stealing from sporting goods stores because of poverty?

[everyonematters]

11. yes, shoplifting, they sell clothing.

[MichMan]

12. If the stores have to just stand by and let people take what they want, how can they stay open?

Just jack up the prices on honest people, or shut down completely?

Unemployment is at an all time low, so it's not because there is a lack of jobs.

[everyonematters]

13. They can spend more money on security. We can put more people in jail, or we can reduce poverty.

[Farmer-Rick]

15. Seems to be the cost of doing business anymore

When you promote corruption and organized crime like the GQP does, you get it at all levels.

No surprise that criminals have developed better, faster thieves. The corrupted are just pulling themselves up by their own bootstraps.

There are so many poor folks and so few good jobs, that criminal organizations seem to offer a solution. Especially if your leaders are obviously on the take.

We are at an all time high for homelessness. And if you think the unemployment rate is an indicator of a strong job economy, I ask you to remember that immediately before the 2008 crash, the unemployment rate was only 4 to 5 percent.