Dick’s Sporting Goods reported a 23% drop in profits and slashed its earnings guidance for the year after it saw an uptick in retail theft and implemented aggressive markdowns to clear out excess inventory in its outdoor category, the company announced Tuesday. For the first time in three years, Dick’s fell short of Wall Street’s estimates on the top and bottom lines. It also announced cuts to its global head count. The company’s shares fell 24% Tuesday, wiping out the stock’s 22% year-to-date gain through Monday’s close.Here’s how the company did in its second fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:Earnings per share: $2.82 vs. $3.81 expectedRevenue: $3.22 billion vs. $3.24 billion expectedThe company’s reported net income for the three-month period that ended July 29 was $244 million, or $2.82 per share, compared with $318.5 million, or $3.25 per share, a year earlier. Sales rose to $3.22 billion from $3.11 billion a year earlier.The company lowered its profit forecast for the year in part because it expects shrink, a retail industry term that refers to inventory lost by theft or internal issues, to get worse before it gets better. “Organized retail crime and theft in general is an increasingly serious issue impacting many retailers. Based on the results from our most recent physical inventory cycle, the impact of theft on our shrink was meaningful to both our Q2 results and our go forward expectations for the balance of the year,” CEO Lauren Hobart said on a call with analysts. “Beyond shrink, we also took decisive action on excess product, part …
