Dick’s Sporting Goods reported mixed results for its second quarter of fiscal year 2023, with sales rising but profits falling due to inventory shrinkage..
**Key Financial Highlights:**.
* Net sales increased 8.5% to $2.99 billion, exceeding analyst estimates of $2.94 billion..
* Comparable store sales grew 6.4%, driven by strength in outdoor leisure categories..
* Gross profit margin declined by 190 basis points to 29.3%..
* Operating income dropped 21.9% to $289.7 million..
* Net income plunged 32.6% to $182.4 million..
* Diluted earnings per share decreased 32.4% to $1.60, falling short of market expectations of $1.69..
**Inventory Issues Impact Profitability:**.
Dick’s Sporting Goods faced significant inventory challenges during the quarter. The company noted a rise in inventory shrinkage, which refers to the loss of inventory due to factors such as theft, damage, or misplacement. This issue contributed to a decline in gross profit margin and, consequently, impacted overall profitability..
**Performance by Category:**.
* Team sports sales increased by a high single-digit percentage..
* Outdoor recreation, golf, and hunting categories also performed well..
* Apparel and footwear sales grew in the low single digits..
**CEO Comments:**.
Lauren Hobart, President, and CEO of Dick’s Sporting Goods, commented on the results: .
