Why Dick's Sporting Goods Stock Dropped Today
Shares of Dick's Sporting Goods (NYSE: DKS) dropped on Wednesday after the athletic goods retailer reported results for its fiscal second quarter. As of 1:45 p.m. ET, Dick's stock was down 6.7%, but it had been down by nearly 11% earlier in the session.
In its fiscal Q2, which ended Aug. 3, Dick's same-store sales grew by 4.5%, which led to nearly 8% growth in its net sales. The company's net sales of $3.5 billion were better than expected, which helped boost profit margins -- a welcome development.
Besides the financial benefits that come from higher sales, Dick's profits also improved thanks to lower levels of shrinkage (inventory losses due to shoplifting, employee theft, and various types of fraud and errors). The company's net income rose by a whopping 48% year over year to $362 million.
Source Fool.com
