Dick’s Sporting Goods Executive Finally Admits ‘Assault-Style’ Rifle Ban Was Bad for Business

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Dick’s Sporting Goods stock is hurting in the months following their decision to stop selling “assault-style” rifles.

The company’s stock fell more than four percent due to J.P. Morgan’s projections for the sporting goods store.

“Looking forward, gross margin-driven upside appears less probable given 3Q’s performance, changing comparisons, and rising inventory levels,” said analyst Christopher Horvers. “The latter appears to be a theme across retail (which can be risky in the seasonal apparel world).”

Although the company had reported better-than-expected sales for the third quarter, top executives still admitted that their growth was impacted by the decision during a call with investors.

“In addition to the strategic decisions we made regarding firearms earlier this year, the broader industry has decelerated and remains weak as evidenced by most recent national background check data,” Lee Bolitsky, Dick’s chief financial officer said. “We believe this also contributed to the decline.”

Dick’s Sporting Goods is also exploring the possibility of stopping the sale of all hunting gear entirely in order to help the company.

“We are looking at a number of stores where the hunt business significantly under performs, and we will assess whether we want to take it out and replace it with these other categories if that ends up  to be a smart thing to do from a business standpoint,’’ CEO Ed Stack said.

The company will not reconsider its stance on gun sales at their stores, but it is uncertain if stopping the sale of hunting gear will help them grow.

What do you think?

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Sabrina Davis
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Sabrina Davis

Dick’s is getting just what it deserves. Good and hard. I’ll never shop there for ANYTHING again.

Mark Sherman
Member
Mark Sherman

This is weak reporting. Dicks have been in trouble since December 2, 2016 which was their last high mark at $58.86 and then the bottom began to fall out. Stock price is down over 40% since that time and it was worse in 2017. So, their stock prices were down… Read more »

Mark Sherman
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Mark Sherman
Mark Sherman
Member
Mark Sherman
Phoenix
Member
Phoenix

It sounds like all sporting goods stores are tanking. I’m also not so sure they are actually regreting their choice if their next decision is to get rid of the hunting department all together. The department likely wasn’t selling well even before they made the decision to stop selling certain… Read more »

Screwtape
Member
Screwtape

I think a large part of the problem is competition, e.g. the internet, and non-specialized stores selling a lot of the same stuff. Firearms are a harder sell. They are highly-regulated and, again, competition. What I wonder is WHY Dick’s still has Stack as CEO. Not only did he make… Read more »

Phoenix
Member
Phoenix

He probably made the choice because the gun sales were not doing well to begin with – so he tried to jump on the political bandwagon to see if that would boost other sales in other areas. Any backlash on lost hunter sales is probably considered minimal. I’m not saying… Read more »

Screwtape
Member
Screwtape

I’m not going to guess at his motives, but his choices proved wrong. I’m not so sure that “specialization” and harnessing the internet are bad things for sporting goods stores. REI is doing well, but they leverage the internet market. (they also charge some hefty prices).

Al Zabel
Member
Al Zabel

Anyone, who has stock in this company, is just plain stupid.
Having a dim wit like this at the helm, is ignorance, squared.
Anyone could have told this pea brain, that actions, have consequences.
But in the liberal mindset?
There are no consequences, for being stupid.

Phyllis Softa
Member
Phyllis Softa

Stock in any storefront retail has been risky since the competition from Amazon. But if you compare Dick’s Stock after hrs price and 1 yr ago, it is the same at $37.82.

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