Dick's Sporting Goods shares slumped as much as 24.5% on Tuesday as the footwear retailer slashed its full-year profit target after missing expectations for the second quarter.

The company said its quarterly profit was short of its own expectations due to an increase in inventory shrink, or retail theft, that led to weaker margins.

The retailer now expects annual profit per share in the range of $11.33 to $12.13, below the prior forecast of $12.90-$13.80.

While Dick's Sporting did not specify whether the theft was organized retail crime, the company like many other retailers in the United States including big box retailer Target has seen profit and margins suffer due to inventory shrink.

Dick's quarterly gross margin fell to 34.42% from 36.03% a year earlier.

Retailers including Dick's Sporting Goods have been trying to find ways to cut costs as margins take a hit from soaring supply chain and labor expenses.

The company on Monday cut jobs at its customer support center and said would incur a severance expense of around $20 million in the current quarter.

It also expects to take a one-time charge between $25 million to $50 million in the year as it streamlines its operations.

On an adjusted basis, the company expects to earn $11.50 per share to $12.30 per share for the full year. Analysts were expecting the company to earn $13.50 per share, according to Refinitiv data.

Dick's shares were trading at $111.14 and dragged shares of rival retailers.

Shares of Hibbett were down about 5%, Nike down 1%, and Lululemon Athletica down 3% and Under Armour was down about 2%, while Foot Locker was down about 2%.

(Reporting by Juveria Tabassum; editing by Eileen Soreng)