The popular retail chain reported a 23% drop in profits in the second quarter across its more than 700 stores nationwide — despite sales rising 3.6%.

Dick’s attributed the losses to “organized retail crime and our ability to effectively manage inventory shrink,” an industry term used to describe stolen or lost merchandise.

“Our Q2 profitability was short of our expectations due in large part to the impact of elevated inventory shrink, an increasingly serious issue impacting many retailers,” Dick’s president and CEO Lauren Hobart said.

[Until cities start providing robust incentives against looters, the trend will continue, and shareholders will continue to lose value in retail companies. The share price of Dick’s dropped over 20% after this call, a stunning devaluation for its shareholders. — Ed]