Dick’s Sporting Goods on Thursday reported quarterly earnings that beat Wall Street views on the top and bottom lines, but its margins were pressured by higher costs and inventory shrinkage.
Net income fell to $217.7 million, or $2.80 per share, in the second quarter ended July 29, from $257.2 million, or $3.06 per share, a year earlier.
Net sales rose 8.2% to $3.1 billion, topping analysts’ average estimate of $3.05 billion, according to Refinitiv data. Comparable sales jumped 7.3%.
The company’s gross margin rate contracted by 150 basis points to 30.1%, reflecting higher product costs and increased markdowns to clear excess inventory. Dick’s also faced headwinds from a $95 million charge related to inventory shrinkage.
Chief Executive Officer Lauren Hobart said the retailer had made .
