Dick's Sporting Goods Hit Hard By Retail Theft, Announces Layoffs
  • 8 months ago
Dick's Sporting Goods announced layoffs of an unspecified number of employees due to retail theft cutting into profits. Retail theft and damage to merchandise significantly hurt Dick's second-quarter results more than anticipated. Shrink, which is losses from theft and damage, was the main factor hurting profits, along with weak outdoor category sales. Dick's expects to pay around $20 million in severance costs for staffing cuts impacting its customer support center. The company reported a 1.8% growth in comparable store sales for the recent quarter compared to a 5.1% drop in the same period last year. Dick's stock price dropped over 24% on the day of the earnings report and staffing cut announcement. Dick's employs around 18,800 full-time and 34,000 part-time workers total, according to earlier reported figures.
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