Good Lifestyle

Whether you are an athlete, a person shopping for an athlete or someone who likes to refresh your gymnasium clothes several times a year, you probably visit Dick's Sporting Goods (or its website) a bit regularly. The store, which has more than 740 locations across the country, is known for its sports shoes, clothes and exercise equipment; You can even buy outdoor goods such as kayaks, sleeping bags and skis. However, the company's most recent results report showed a disturbing drop in profits. Read more to find out why buyers can abandon Dick Sports items.

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In a August 22 Call , Dick's Sporting Goods announced its profits for its second quarter for the 2023 financial year, which ended on July 29. In particular, the retailer declared a 23% drop in profits.

Dick's also did not meet Wall Street's expectations for the quarter: an investigation revealed that analysts expected $ 3.24 billion in revenues, while the retailer said 3.22 billion of dollars, according to CNBC . It was the first time in three years that Dick did not succeed in analysts' estimates.

However, it was not bad news: Dick's sales increased by 3.6% to 3.22 billion dollars, compared to $ 3.11 billion in 2022. These sales were motivated in particular Here the rear season of July, explained, explained Lauren Hobart , the president and chief executive officer.

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On the call of winnings, Navdeep Gupta , Dick's Sporting Goods’s financial director, said the company expected store sales stable or increase by 2023 as a whole. GUPTA said it was important to consider "macroeconomic uncertainty", as the future resumption of student loan payments.

In other words, IFF buyers turn away from Dick, this could be because they spend less in sports equipment and more to reimburse student loans. AE0FCC31AE342FD3A1346EBB1F342FCB

The drop in sales has already had unfortunate consequences. The company has announced that it had reduced less than 1% of its global workforce in August, these roles mainly in its customer support center.

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But it is not only the student loan payments that buyers might think. During his call for results, the leaders of Dicks expressed that sales in its exterior category, which include marinating navigation, campsite, cycling, patio, fishing and other similar activities, were weaker than ideal.

"There is a very short window to sell through it," said Hobart.

The news was very different from that of the retailer Profit call 2020 , in which its vast exterior category was a boon, because people were trying to collect more socially distant hobs. During the last quarter, the most efficient categories were team shoes and sportswear, according to the call.

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The leadership of Dick's Sporting Goods explained that the biggest problem for its profits was to "shrink", an industry term for theft, damage and cashier error, according to Investigation .

"The crime and theft organized in general is an increasingly serious problem which has an impact on many retailers," said Hobart when the profits are called. "The impact of the flight on our shortcut was significant for our second quarter results and our avant-garde expectations for the balance of the year."

GUPTA reiterated this point: "It is not only a Dick sports product challenge. This is a collective retail challenge."

Indeed, other retailers have reported theft problems. Target recently said He expected to lose half a billion dollars, while Dollar Tree I just said He would adopt a "very defensive approach to the shrink abandon them completely .

It remains to decide what Dick Sports items will do to fight the problem.

"Shrink ... is a problem for our whole country," said Hobart, "and that is something on which we all have to work together with our partners, with our commercial organizations, and with our government honestly to continue to resolve the reduction problem. "