Dick’s says new gun pol­icy will im­pact sales

The Columbus Dispatch - - Market Summary -

CORAOPOLIS, Pa. — Dick’s Sport­ing Goods on Tues­day re­ported dis­ap­point­ing hol­i­day sales num­bers in part due to weak de­mand for one-time hot brands like Un­der Ar­mour.

The com­pany’s CEO also said re­cent changes to its firearm poli­cies, end­ing the sale of guns to any­one un­der 21, will hurt fu­ture sales and may cause fewer shop­pers to come to its stores.

Last month, Dick’s stepped into the national spot­light when, in the af­ter­math of a school mas­sacre in Park­land, Florida, it banned the sale of as­sault-style ri­fles and the sale of all guns to any­one un­der 21. Other re­tail­ers fol­lowed suit, in­clud­ing Wal­mart, which also raised its min­i­mum age rules for firearms.

Sales fell 2 per­cent at es­tab­lished stores dur­ing the fourth quar­ter, which was about dou­ble the de­cline that Wall Street was ex­pect­ing. In­dus­try an­a­lysts watch that fig­ure closely as a barom­e­ter of a re­tailer’s health as it ex­cludes the volatil­ity of stores re­cently opened or closed.

To try and im­prove sales, CEO Ed­ward Stack said the com­pany will give more store space to its pri­vate­la­bel brands, such as Sec­ond Skin work­out ap­parel. Its store brands are grow­ing faster than oth­ers, and Stack ex­pects them to sur­pass $2 bil­lion in sales in a “short pe­riod of time,” but did not give an ex­act time for that to hap­pen.

Stack said that the com­pany’s new firearms pol­icy “is not go­ing to be pos­i­tive from a traf­fic stand­point and a sales stand­point.”

Dick’s ex­pects full-year earn­ings of about $2.80 to $3 per share. An­a­lysts polled by Fac­tSet pre­dict $2.79 per share.

For the pe­riod ended Feb. 3, Dick’s Sport­ing Goods Inc. earned $116 mil­lion, or $1.11 per share. A year ear­lier the com­pany, based just out­side of Pitts­burgh in Coraopolis, Penn­syl­va­nia, earned $90.2 mil­lion, or 81 cents per share.

Ex­clud­ing cer­tain items, earn­ings were $1.22 per share. That’s 2 cents bet­ter than an­a­lysts ex­pected, ac­cord­ing to a sur­vey by Zacks In­vest­ment Re­search.

Rev­enue rose to $2.66 bil­lion, from $2.48 bil­lion, with on­line sales up about 9 per­cent. But that was still shy of Wall Street pro­jec­tions for $2.73 bil­lion.


In the wake of the Florida school mas­sacre, Dick’s an­nounced it would no longer sell as­sault-style ri­fles and would not sell any gun to those un­der 21.

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