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DICK'S SPORTING GOODS ALERT: Bragar Eagel & Squire, P.C. is Investigating DICK'S Sporting Goods, Inc. on Behalf of Long-Term Stockholders and Encourages Investors to Contact the Firm

1. DKS faces a class action lawsuit regarding fiduciary duty breaches. 2. Allegations include misleading statements about product demand and inventory management. 3. Profitability was significantly below analyst expectations, impacting stock value. 4. Previous analyst reports reduced sales and earnings estimates for DKS. 5. Excess inventory liquidation could harm DKS profitability.

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FAQ

Why Very Bearish?

The class action lawsuit and poor earnings guidance indicate serious financial distress, as seen in past lawsuits causing major declines in similar stocks.

How important is it?

The issues raised are critical for investor trust and can lead to substantial market reactions.

Why Short Term?

Immediate legal and financial ramifications likely to affect market sentiment and stock price rapidly, similar to past legal incidents in retail impacting short-term performance.

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DKSTD CowenTelsey Advisory Group
NEW YORK, Feb. 14, 2025 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against DICK’S Sporting Goods, Inc. (NYSE: DKS) on behalf of long-term stockholders following a class action complaint that was filed against DICK’S Sporting Goods on February 16, 2024 with a Class Period from May 25, 2022 to August 21, 2023. Our investigation concerns whether the board of directors of DICK’S Sporting Goods have breached their fiduciary duties to the company. The Dick’s Sporting Goods class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) demand for products in Dick’s Sporting Goods’ 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 Dick’s Sporting Goods 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 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 Sporting Goods for both the first quarter of fiscal year 2023 and the full year. On this news, the price of Dick’s Sporting Goods common stock fell nearly 7%. Then, on August 22, 2023, Dick’s Sporting Goods revealed that profitability for the second quarter of 2023 was significantly lower than previously represented. Specifically, Dick’s Sporting Goods’ 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%). Dick’s Sporting Goods also lowered its profitability guidance for the rest of fiscal year 2023. On this news, the price of Dick’s Sporting Goods common stock fell more than 24%. If you are a long-term stockholder of DICK’S Sporting Goods, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you. About Bragar Eagel & Squire, P.C.: Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes. Contact Information: Bragar Eagel & Squire, P.C.Brandon Walker, Esq.Marion Passmore, Esq.(212) 355-4648investigations@bespc.comwww.bespc.com

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