Dick's Sporting Goods plunged 25% on Tuesday after the company revealed weak second-quarter earnings.
The retailer said it saw a decline in profits due to increased shrinkage, which is code for retail theft.
The mention of theft hurting its business was a first for Dick's Sporting Goods, and it took analysts by surprise.
AdvertisementAdvertisementDick's Sporting Goods was a darling retail stock that has seen strong performance since the COVID-19 pandemic began in March 2020.
Part of the strength in Dick's Sporting Goods stock in recent years was driven by an increase in business as consumers got out of their house and more active as the pandemic subsided.
Persons:
Lauren Hobart, Lauren Hobard, Target, Ed Stack, Goldman Sachs, Kate McShane, Wells, Will Gaertner
Organizations:
Sporting Goods, Service, Walgreens, Target, Dick's Sporting Goods, Sporting, Goods
Locations:
Wall, Silicon