| Retailers have a "shrink" problem in 2023. It's an industry term for theft and damaged inventory that's been popping up more and more this earnings season. Last week, it was causing headaches when a "mob of criminals" ransacked an L.A. Nordstrom (JWN) for $300,000 in merchandise... This week, it was the excuse Dick's Sporting Goods (DKS) used for falling short of profitability expectations in the second quarter. Dick's CEO Lauren Hobart called it "an increasingly serious issue impacting many retailers." And she's right. Her company shed $3 billion in value on Tuesday as DKS shares sank over 20% on the revelation. Fellow retailer Ulta Beauty (ULTA) has faced its fair share of challenges with inventory shrink, theft, and organized retail crime (ORC). During its second-quarter earnings call last night, Ulta reported a decrease in gross profits as a percentage of net sales "primarily due to lower merchandise margin, higher inventory shrink, and higher supply chain costs." So far today, Ulta shares have tumbled 4% on the announcement, down 26% from the stock's $551.43 all-time high in April. And as surprising as this may sound, Ulta's post-earnings "shrink" sink has me thrilled. Not because we're cynical and want Ulta to fail... or because we were betting against the company... But because Ulta's pullback could be the "ulta-mate" buy-the-dip opportunity. And I'll show you why here today... Click here to continue reading Until next time, | 
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