**Dick’s Sporting Goods Q2 Sales Boosted by Comps, Profit Hit by Inventory Shrinkage**.
Dick’s Sporting Goods reported a 10.4% increase in comparable sales for the second quarter of 2023, driven by strength in both its in-store and online channels. However, the company’s net income fell by 16.5% due to a significant increase in inventory shrinkage..
**Key Financial Results**.
* Net sales: $3.08 billion, up 6.9% from $2.87 billion in Q2 2022.
* Comparable sales: Up 10.4%.
* Net income: $244.0 million, down 16.5% from $292.4 million in Q2 2022.
* Diluted earnings per share: $2.63, down 16.5% from $3.15 in Q2 2022.
**Sales Performance**.
Dick’s Sporting Goods attributed its strong sales growth to increased consumer demand for outdoor and fitness products, as well as the success of its loyalty program and omnichannel initiatives. The company saw particular strength in categories such as apparel, footwear, and outdoor equipment..
Comparable sales growth was driven by both brick-and-mortar stores and online channels. In-store sales rose by 6.9%, while online sales surged by 20.2%..
**Inventory Shrinkage Impact**.
Despite the positive sales performance, Dick’s Sporting Goods’ net income was negatively impacted by a 164-basis-point increase in inventory shrinkage. The company attributed this increase to a combination of factors, including organized retail crime, employee theft, and vendor fraud..
**Management Commentary**.
