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Dick's Sporting Goods, Inc.

Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired Dick’s Sporting Goods, Inc. (“DSG” or the “Company”) (NYSE: DSG) common stock between May 25, 2022 and August 21, 2023, inclusive. The lawsuit seeks to recover DSG shareholders’ investment losses.

If you purchased common stock in DSG between May 25, 2022 and August 21, 2023, inclusive, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.

According to the Complaint, DSG is a leading sporting goods retailer that sells sports equipment, apparel, footwear, and accessories to retail consumers throughout the United States.  DSG is an “omnichannel” 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.

Throughout the Class Period, Defendants failed to disclose to investors that: (i) demand for products in DSG’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 DSG 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 DSG’s profitability.

On August 22, 2023, DSG revealed that profitability for the second quarter of 2023 was significantly lower than previously represented.  Specifically, DSG’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 DSG’s previously-issued guidance of 11.7%).  DSG also lowered its profitability guidance for the rest of fiscal year 2023.

On this news, DSG’s stock price fell $35.51, or over 24%, to close at $111.53 per share on August 22, 2023.

If you wish to serve as lead plaintiff, you must move the Court no later than April 22, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.

Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.

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Contact Information:

Peter Allocco
Investor Relations Manager
Bernstein Liebhard LLP
(212) 951-2030