Wolf Haldenstein Adler Freeman & Herz LLP is investigating potential securities fraud claims against DICK’S Sporting Goods (NASDAQ: DKS)
NEW YORK, NY – August 29, 2023 – Wolf Haldenstein Adler Freeman & Herz LLP (“Wolf Haldenstein”), a preeminent national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors in DICK’S Sporting Goods (“Dick’s” or “the Company”) (NASDAQ: DKS) for violations of federal securities laws.
All investors who purchased shares and incurred losses are advised to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774.
Wolf Haldenstein is investigating whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors.
DICK’S Sporting Goods is the largest U.S. based full-line omni-channel sporting goods retailer. On August 22, 2023, Dick’s released a press release announcing Second Quarter results. Dick’s reported a 23% drop in adjusted earnings to $2.82 per share while net sales rose 3.6% to $3.22 billion. Wall Street expected a 3.5% earnings increase to $3.81 per share adjusted, on 4% revenue growth to $3.24 billion. Comparable store sales rose 1.8%, shy of forecasts of a 2.7% increase.
Dick’s sees full-year earnings between $11.50 per share and $12.30 per share adjusted — a cut of about 10% from earlier guidance. The sports retailer guided flat comparable sales to 2% growth for the year. FactSet expects full-year earnings of $13.50 per share on a 1% increase in comparable sales.
Dick’s is the subject of an Investor’s Business Daily report published on August 23, 2023, which explained: “Q2 profitability fell short largely due to the impact of elevated inventory shrink,” according to CEO Lauren Hobart in the release, “which is an increasingly serious issue impacting many retailers.” (Inventory shrink is a retail industry term that refers to inventory lost by theft or internal issues.) Net inventories declined 5% to $2.85 billion for the quarter compared to last year. In the earnings call, Hobart noted organized retail crime and general theft had a meaningful impact on full-year expectations.
The reference to shrink is the first that Dick’s has made in an earnings call or press release in nearly 20 years.
On this news, Dick’s stock price dropped 24.15%, from $147.04 to $111.53.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at classmember@whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, donovan@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774