After the CEO of Dick’s Sporting Goods announced they would no longer sell “Assault Rifles,” they expected their sales to take a hit. They hoped that the lower sales from the policy would be off set by new customers coming into their stores. Turns out they were dead wrong.
According to Reuters, Dick’s Sporting Goods reported a bigger-than-expected drop in quarterly same-store sales on Wednesday and forecast further declines this year, hit by tighter gun controls and a drop in Under Armour sales.
Annalists estimated a drop of .62% in same-store sales, but the real number ended up being over twice that at 1.9%. Those numbers causes a 10% drop in shares for the company.
“We had expected comp weakness in hunting and electronics, as well as continued pressure in Under Armour and less benefit from store maturation, but these trends caused more pressure than anticipated,” Telsey analyst Joseph Feldman said.
Dick’s says they are not worried they expect things to subside and are confident that their sales trajectory will improve next year.
“The improvement in the U.S. athletic market should overcome the weakness in hunting, electronics, and Under Armour as we get into 2019,” Feldman added.
These numbers show that sportsmen have stuck to their guns and have refused to give their money to dicks. I know it seems like a loosing battle, and hunters in the long run will not be able to hurt the companies bottom line. But the solidarity is encouraging and I am glad other companies that respect our sport and values are benefiting.
I encourage hunters to remain stead fast and let your dollars do the talking. Keep saying no to Dick’s.