Dick’s Sporting Goods on Thursday reported a second quarter beat on both the top and bottom lines, although the retailer saw its profits dented by inventory shrinkage..
**Net sales increased 9.3% to $3.2 billion**, compared to last year’s $2.93 billion, with comparable store sales also increasing 9.3%..
E-commerce sales grew 11%, continuing the elevated levels seen throughout the pandemic, but at a more moderate pace..
Despite the positive sales performance, Dick’s Sporting Goods saw its gross margin decline 170 basis points to 30.3% due to higher product costs, freight expenses and increased markdowns to clear excess inventory, as well as higher shrink..
**The retailer noted that inventory shrink, or unexplained inventory loss, increased to $145 million during the quarter, compared to $71 million last year.**.
As a result, Dick’s Sporting Goods reported a **net income of $160.7 million**, down from $227.4 million a year ago..
Looking ahead, the retailer said it is maintaining its full-year sales and earnings guidance, despite the inventory shrink and the ongoing macroeconomic headwinds..
**Dick’s Sporting Goods is now expecting net sales to increase in the range of 5% to 7% this year, compared to its previous guidance of 6% to 8%.**.
The company also said it is expecting diluted earnings per share to be in the range of $12.45 to $13.45, compared to its previous guidance of $13.00 to $14.00..
**The retailer said it is confident in its ability to navigate the current challenges and emerge stronger.**.
