Case Summary

Dick’s Sporting Goods

NYSE: DKS

Case Details

  • Plumbers and Pipefitters Local Union No. 719 Pension Trust Fund v. Dicks Sporting Goods, Inc. et al.
  • Class Period: May 25, 2022 - August 21, 2023
  • Date Filed:February 20, 2024
  • Jurisdiction:U.S. District Court, Western District of Pennsylvania
  • Docket Number: 2:24-cv-00196
  • Lead Plaintiff Deadline: April 22, 2024
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Overview

A class action lawsuit has been filed against Dick’s Sporting Goods, Inc. (“Dick’s” or the “Company”) (NYSE: DKS) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The Dick’s lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Dick’s securities between May 25, 2022, and August 21, 2023, both dates inclusive (the “Class Period”), and investors have until April 22, 2024, to seek appointment as lead plaintiff of the Dick’s Sporting Goods class action lawsuit.

Dick’s is a leading sporting goods retailer that sells sports equipment, apparel, footwear, and accessories to retail consumers throughout the United States. Dick’s is an “omni-channel” retailer, meaning it offers products to consumers in physical store locations as well as online and through mobile apps.  The Company has over 700 physical locations across the United States.

The lawsuit alleges that defendants, throughout the Class Period, made false and/or misleading statements and/or failed to disclose that: (1) demand for products in Dick’s outdoor segment was slowing faster than defendants represented, resulting in excess inventory; (2) the structural changes that defendants repeatedly touted, including differentiated products, improved pricing technology, and more efficient clearance channels, did not allow Dick’s to manage its excess inventory without hurting its profitability; and (3) the need to liquidate excess inventory, including in the outdoor segment, would have a materially negative effect on Dick’s Sporting Goods profitability.

On May 19, 2023, TD Cowen and Telsey Advisory Group issued analyst reports lowering their sales and earnings per share estimates for Dick’s for both the first quarter of fiscal year 2023 and the full year.  On this news, the price of Dick’s common stock fell nearly 7%.  Then, on August 22, 2023, Dick’s revealed that profitability for the second quarter of 2023 was significantly lower than previously represented.

Specifically, Dick’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 previously-issued guidance of 11.7%).  Dick’s also lowered its profitability guidance for the rest of fiscal year 2023. On this news, the price of Dick’s common stock fell more than 24%.

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If you purchased or otherwise acquired Dick’s Sporting Goods (NYSE: DKS) securities between May 25, 2022, and August 21, 2023, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Dick’s Sporting Goods lawsuit is April 22, 2024.

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