Slow sales of hunting gear a drag on results for Dick’s

Pittsburgh Post-Gazette Dick’s Sporting Goods took a few punches last quarter, with the Findlay retailer reporting a pullback on sales of hunting gear as well as a slowdown in demand for its Under Armour merchandise.

The retailer told analysts Wednesday it’s planning to remove virtually all hunting products from 10 of its more than 700 stores, although it didn’t indicate whether that policy would be expanded to include other locations. Affected stores weren’t identified.

CEO Edward Stack announced the shift in a call with analysts Wednesday while discussing Dick’s second-quarter earnings, which showed mixed results for the company.

The company reported profits of $119 million, or $1.20 a share, compared with $112 million, or $1.03 a share, during the second quarter of 2017. Second-quarter revenue this year stood at $2.18 billion, compared with $2.16 billion during the year-ago quarter.

Sales at Dick’s Sporting Goods stores that have been open for at least one year declined 4 percent, hit by a continuing slide in demand for hunting supplies, as well as sales of Under Armour products and electronics. Lee Belitsky, Dick’s chief financial officer, said transactions had declined by nearly 5 percent, hurt by the drop in the hunting segment and fewer promotions.

Mr. Stack said sales in Under Armour clothing and other products had significantly declined due to the Baltimore, Md.-based company’s decision to expand distribution to other retailers.

Dick’s move to scale back on hunting products comes after the Findlay sporting goods retailer announced in February it would stop selling assault-style rifles at its Field & Stream stores.

Mr. Stack on Wednesday blamed the drop in sales on broader challenges that the entire hunting industry is facing — not on consumer backlash for that decision.

The store’s golf, footwear and athletic apparel sales did well last quarter, Mr. Stack said, as did the online sales, which increased 12

percent. Digital sales are a growing part of Dick’s business, now accounting for just over 10 percent of the company’s total sales.

For the year, the company is projecting sales in established stores to decline 3 to 4 percent from last year. Dick’s had previously predicted it would see a flat to low single-digit decline.

Dick’s shares closed at $35.60 Wednesday, down 79 cents.