Dick’s Sporting Goods reported mixed second-quarter results on Thursday as inventory challenges weighed on its bottom line despite strong comparable sales growth.
**Q2 Highlights**
* Net sales increased by 8.5% year-over-year to $3.1 billion, exceeding analyst expectations.
* Comparable sales grew by 7.6%, marking the company’s 19th consecutive quarter of positive comparable sales growth.
* Digital sales increased by 14% compared to the prior year.
* Net income declined by 29.4% to $183 million, resulting in diluted earnings per share of $3.02, below market estimates.
**Inventory Issues Impact Profits**
Dick’s Sporting Goods attributed the decline in net income primarily to inventory shrinkage, which refers to the loss of inventory due to theft, damage, or other factors. The company experienced a significant increase in inventory shrinkage during the quarter, which negatively affected its gross margin.
CEO Lauren Hobart stated, .
