Dick's Sporting Goods profits down 23%

[beej]

Shoplifting has a huge impact on Dick's sporting goods profits.

Got to hand it to CNN for reporting this, even if they did bury the real underlying issue down to the last paragraphs. It sure seems like these crime policies are affecting profits way more than any right wing boycotts.

https://www.cnn.com/2023/08/22/business/dicks-retail-theft/index.html

The sporting goods and athletic clothing seller reported second-quarter results Tuesday morning that included a 23% drop in profit, despite sales that rose 3.6% in the period. Shares of Dick's (DKS) plunged nearly 24% Tuesday.

The company blamed shrink, the industry term for theft and damaged inventory, for its surprisingly poor earnings. Although other national retailers have also warned investors about growing theft, Dick's is among the first to blame its lackluster quarterly financial report primarily on theft.

According to the National Retail Federation, the industry's biggest trade group, large-scale store theft is becoming a bigger part of retail shrink.

The NRF estimates total annual shrink reached $94.5 billion in 2021, up from $90.8 billion from 2020. Nearly half was attributed to large-scale theft of products. The group said retailers on average saw a 26.5% increase in this type of theft over the previous year.

Merchandise "shrink" is the value of merchandise lost to theft, fraud, damage and other reasons.

Organized retail crime, the more insidious type of store theft involving groups of people targeting stores that carry higher-value items like electronics, sporting goods, designer handbags and designer clothing, in particular has retailers rattled. Retail crime experts say the groups then resell the merchandise in secondary marketplaces, such as eBay, OfferUp and Facebook Marketplace or even back into the legitimate supply chain.

Shopping malls and high-end stores in large cities, including Los Angeles, Chicago and New York have suffered a spate of dangerous smash-and-grab attacks over the last year in which perpetrators have used sledgehammers and other equipment to break into stores and make off with several thousand dollars in merchandise.

Just last week, a "mob of criminals" stole more than $300,000 worth of merchandise from the Westfield Topanga Shopping Center in Los Angeles on a Saturday afternoon, police said.

One factor that police believe is a driver of organized retail crime more recently is the fact that under new criminal justice reform laws and local district attorney's policies to reduce mass incarceration, grand theft – the law that covers shoplifting – is a crime where judges can no longer jail a a person or even require bail, no matter how many times the same individual is caught.

In New York City, the New York Police Department has turned to federal prosecutors to target retail crime leaders who organized the storming of high-end stores to clean them out.

There are 300 people who have been arrested a collective 4,000 times that are solely responsible for 30% of all grand larceny in New York City and 70% of them are out on the street, according to an NYPD review of New York State court records.

[RobertELee]

I'd also wonder how much of that is contributed to their anti 2A stance. I know I haven't been in one since.

[mkd]

My portfolio's small dicks holdings has been whacked vigorously this week.

[Incogneeto]

My portfolio's small dicks holdings has been whacked vigorously this week.

Did You Lose a Load?............Of Money?

[mkd]

Did You Lose a Load?............Of Money?

Had my head above water before, now it's gone down

[Incogneeto]

Had my head above water before, now it's gone down

"Biden /Harris 2024"  your only hope.

[CNCAppsJames]

I haven't spent a nickel in Dicks since they went anti-2a. Certain retail enterprises are hard to avoid, but others... like Sporting Goods, I have DOZENS of options. I drop thousands of dollars every year in places like Sheels, Bass Pro, Cabelas, Sportsman's Warehouse and mom amd pop shops. 

[Jim at Gentex]

Not a fan of Dick's either. 

We have one in our local mall that just reopened after a major remodel that took more than a year.
They added things like a climbing wall inside the store, and they had a few notable retired athletes there signing autographs during their grand opening.

One of them was former Yankee Tino Martinez.
Some friends of mine are huge Yankee fans, so their 3 boys grabbed their Tino Martinez baseball cards and headed to Dick's to get them autographed.

Come to find out he only signed autographs for a very short time, and you had to be on a pre-approved list for security reasons. The kids did get a glimpse of him walking around the store, but his security detail wouldn't let anyone get within an arm's reach of him.

Then they found out Dick's is charging $15 a pop for the climbing wall, which they thought was excessive, so they walked around the store for a bit and left without buying anything, and the kids were disappointed they didn't get their autographs.

So yeah, I wasn't going to be setting foot in the place anyway, and now I like them even a little less. 

[gcode]

We've got a Dick's at our local shopping mall.
I've never been in it thought

[MIL-TFP-41]

No matter their politics, I don't like hearing about stores losing profits to shoplifters. I don't care much for sharia law either, but their punishment for shoplifting is acceptable to me. Now something like a loaf of bread can be overlooked - but a pair of ski's from a sporting goods store? Bring out the axe.

There would be a hell of a lot less thieves in the world if that practice was universal.

[Incogneeto]

No matter their politics, I don't like hearing about stores losing profits to shoplifters. I don't care much for sharia law either, but their punishment for shoplifting is acceptable to me. Now something like a loaf of bread can be overlooked - but a pair of ski's from a sporting goods store? Bring out the axe.

There would be a hell of a lot less thieves in the world if that practice was universal.

Yep, our store here is weekly in the Police Blotter. WTF?

And yea I can cut some slack on food. But a lot of what we see here is just Lazy greed Don't want to pay for nuttin'. 

We have multiple food Pantrys available.

and many are repeat offenders.

[mowens]

Not a lot of food at Dick's, lol.
I don't watch a lot of local news but I haven't heard of any of that widespread, wholesale looting going on here. That's why I was surprised to read about our Cabela's being the number one store for retail theft. So far, we've avoided the no bail political stuff.

[CNCAppsJames]

Not a lot of food at Dick's, lol...
....
 So far, we've avoided the no bail political stuff.

The last time I went into one, I got freeze dried stuff, some beef jerky, and I think hiking stove fuel. It was a while ago... they may not have that stuff anymore.

Just wait until no-bail becomes the law of the land. Keep the Demonrats out and you just might be spared.

[gcode]

And yea I can cut some slack on food. But a lot of what we see here is just Lazy greed Don't want to pay for nuttin'. 

Here is LaLa Land this is organized crime.
The stuff that gets stolen gets sold to vendors who sell it online, or even reintroduce it back into the supply chain
where it winds up back on store shelves.

[Incogneeto]

No Matter.

The cost will be absolved.

And WE will absolve it.

$$$$$$$$$