Lawsuit filed for Investors who lost money with shares of Dick's Sporting Goods, Inc. (NYSE: DKS)

An investor, who purchased shares of Dick's Sporting Goods, Inc. (NYSE: DKS), filed a lawsuit over alleged violations of Federal Securities Laws by Dick's Sporting Goods, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Dick's Sporting Goods, Inc. (NYSE: DKS) have certain options and for certain investors are short and strict deadlines running. Deadline: April 22, 2024. NYSE: DKS investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Coraopolis, PA based Dick's Sporting Goods, Inc. operates as a sporting goods retailer primarily in the eastern United States.

On May 25, 2022, Dick's Sporting Goods, Inc. announced its financial results for the first quarter of fiscal year 2022 and discussed changes in its business strategy during an earnings call. The company claimed to have undergone a "transformation" to sustain its structurally higher merchandise margin when compared to pre-COVID levels. These changes included leveraging relationships with manufacturers for exclusive products, improving pricing technology, and new digital marketing tools. In subsequent updates on August 23, 2022, and November 22, 2022, Dick's Sporting Goods, Inc. continued to express confidence in its merchandise margin. Dick's Sporting Goods, Inc. executives continued to speak positively about demand, mentioning excess inventory in certain outdoor categories but expressing confidence in managing it effectively.
However, on May 19, 2023, analyst reports from TD Cowen and Telsey Advisory Group lowered sales and earnings estimates for Dick's Sporting Goods, Inc. due to their concerns about the "durability of margin expansion since 2019."

Subsequently, on May 23, 2023, Dick's Sporting Goods, Inc. reported its first-quarter fiscal year 2023 results and emphasized that margins would remain elevated and inventory positions would remain favorable.
Then, on August 22, 2023, Dick's Sporting Goods, Inc. announced significantly lower profitability and margins for the second quarter of 2023, attributing the results to issues such as elevated inventory and promotional sales of excess Outdoor inventory.

Shares of Dick's Sporting Goods, Inc. (NYSE: DKS) declined from $152.61 per share on March 09, 2023, to as low as $106.11 per share on August 23, 2023.

The plaintiff claims that between May 25, 2022 and August 21, 2023, the defendants made false and/or misleading statements and/or failed to disclose that demand for products in Dick's Sporting Goods' Outdoor segment was slowing faster than defendants represented, resulting in excess inventory, that the "structural changes" that defendants repeatedly touted, including differentiated products, improved pricing technology, and more efficient clearance channels, did not allow Dick's Sporting Goods to manage its excess inventory without hurting its profitability, and that the need to liquidate excess inventory, including in the Outdoor segment, would have a materially negative effect on Dick's Sporting Goods' profitability.

Those who purchased shares of Dick's Sporting Goods, Inc. (NYSE: DKS) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.