**Dick’s Sporting Goods Delivers Q2 Revenue Rise, Profit Dented by Inventory Loss**
**OVERVIEW
**- Dick’s Sporting Goods saw a jump in second-quarter revenue, but profits were hurt by inventory shrinkage and higher expenses.
– The retailer reported a 9.9% increase in net sales to $2.86 billion for the quarter ended July 29, 2023, compared to $2.59 billion in the prior-year period.
**Quarterly Performance:**
– Comparable store sales, a key metric for retailers, increased by 7.7% compared to the same period in 2022.
– Digital sales, which include e-commerce and buy online, pick up in store (BOPIS), increased by 11.6%.
– The company’s gross margin declined by 150 basis points to 29.6%, primarily due to increased markdowns and higher freight costs.
– Selling, general, and administrative (SG&A) expenses increased by 13.7% to $788.5 million.
– Net income fell by 18.6% to $191.8 million, or $1.26 per share, down from $235.5 million, or $1.55 per share, in the same period last year.
**Challenges and Opportunities:**
– Dick’s Sporting Goods, like many other retailers, has been grappling with supply chain disruptions and inflationary pressures.
– The company has been working to mitigate these headwinds by increasing inventory levels and diversifying its vendor base.
– Dick’s Sporting Goods is also focusing on expanding its omnichannel offerings, including e-commerce and BOPIS, to cater to the evolving shopping habits of consumers.
**Outlook:**
– For the full year 2023, Dick’s Sporting Goods expects net sales to be in the range of $11.5 billion to $11.9 billion, representing a growth of 5% to 8%.
– The company anticipates comparable store sales growth of 3% to 5%.
– Dick’s Sporting Goods plans to open 25 to 30 new stores in 2023, primarily in smaller markets.
**CEO’s Comments:**
– Lauren Hobart, President and CEO of Dick’s Sporting Goods, said in a statement, .
