NEW YORK, Feb. 21, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Western District of Pennsylvania on behalf of all persons or entities who purchased or otherwise acquired Dick’s Sporting Goods, Inc. (“Dick’s Sporting Goods” or the “Company”) (NYSE: DKS) securities between May 25, 2022 and August 21, 2023, inclusive (the “Class Period”).
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) demand for products in the Company’s Outdoor segment was slowing faster than Defendants represented, resulting in excess inventory; (ii) the “structural changes” that Defendants repeatedly touted, including differentiated products, improved pricing technology, and more efficient clearance channels, did not allow the Company to manage its excess inventory without hurting its profitability; and (iii) the need to liquidate excess inventory, including in the Outdoor segment, would have a materially negative effect on the Company’s profitability.
On May 19, 2023, TD Cowen and Telsey Advisory Group issued analyst reports lowering their sales and earnings per share estimates for the Company for both the first quarter of fiscal year 2023 and the full year. On this news, the price of the Company’s common stock fell nearly 7%.
Then, on August 22, 2023, the Company revealed that profitability for the second quarter of 2023 was significantly lower than previously represented. Specifically, the Company’s net income was $244 million (compared to the analyst consensus estimate of $338 million), earnings per share were $2.82 (compared to the analyst consensus estimate of $3.81), gross margin was 34.4% (compared to the analyst consensus estimate of 36.3%), and pre-tax margin was 10.2% (below Dick’s Sporting Goods’ previously-issued guidance of 11.7%). The Company also lowered its profitability guidance for the rest of fiscal year 2023. On this news, the price of the Company’s common stock fell more than 24%.
Investors who purchased or otherwise acquired shares of Dick’s Sporting Goods should contact the Firm prior to the April 22, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
