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Shares in Dick’s Sporting Goods (NYSE:DKS) shed more than a sixth of their value in premarket trading on Tuesday after the athletic apparel retailer cut its annual earnings outlook and posted lower-than-anticipated second quarter income.

In its latest quarterly financial statement, Dick’s slashed its income per share guidance to a range of $11.33 to $12.13, down from a prior estimate of $12.90 to $13.80.

The decreased forecast came as profit per diluted share in the 13 weeks ended on July 29 slipped by 13% to $2.82, missing Bloomberg consensus expectations of $3.81. Dick’s said it was hit by elevated inventory “shrink,” a retail industry term used to refer to a drop in inventory that may stem from internal issues like theft.

Chief Executive Officer Lauren Hobart called the loss of inventory “an increasingly serious issue impacting many retailers.” But she added that the company’s confidence in its “long-term growth opportunities” has never been stronger.