Investing.com -- Shares in Dick’s Sporting Goods (NYSE:DKS) shed more than a sixth of their value in premarket trading on Tuesday after the athletic apparel retailer cut its annual earnings outlook and posted lower-than-anticipated second quarter income.
In its latest quarterly financial statement, Dick's slashed its income per share guidance to a range of $11.33 to $12.13, down from a prior estimate of $12.90 to $13.80.
The decreased forecast came as profit per diluted share in the 13 weeks ended on July 29 slipped by 13% to $2.82, missing Bloomberg consensus expectations of $3.81. Dick's said it was hit by elevated inventory "shrink," a retail industry term used to refer to a drop in inventory that may stem from internal issues like theft.
Chief Executive Officer Lauren Hobart called the loss of inventory "an increasingly serious issue impacting many retailers." But she added that the company's confidence in its "long-term growth opportunities" has never been stronger.
Begin trading today! Create an account by completing our form
At One Financial Markets we are committed to safeguarding your privacy.
Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.
Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.
Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.
By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.