Dick’s Sporting Goods is reporting less than expected earnings following their implementation of gun restrictions, such as no longer selling “assault” rifles and no longer selling any firearm to a person under the age of 21.
They expected to take a drop in sales following the move, but they were certainly not expecting the blowback they actually received.
As Fox Business reports, the sporting goods chain store experienced a drop of more than 8 percent in its shares and a nearly 2 percent drop in same-store sales:
The company posted a 1.9 percent fall in same-store sales, bigger than the average estimate of a 0.62 percent drop, also blaming weak sales of Under Armour products at its stores.
Dick’s was one of the first retailers to stop selling assault rifles and high-capacity magazines as well as bar the sale of guns to people under age 21, following a massacre at a Florida high school in February.
Dick’s said it expects annual same-store to decline 3 percent to 4 percent, compared with a 0.3 percent decline in its 2017 fiscal year. Dick’s also said it expects earnings per share of in the range of $3.02 to $3.20 for the year ending February 2019.
A drop of 3 percent to 4 percent after only posting a 0.3 percent drop in 2017? Ouch.
The company argues some of the unexpected loss came from a drop in the sale of Under Armor products, who recently changed their distribution.
— Fox News (@FoxNews) August 30, 2018
“Shocker,” tweeted former Secret Service agent Dan Bongino. “Dick’s Sporting Goods goes to war with the Second Amendment and they subsequently see sales numbers slide.”
Here’s more, from CNBC:
Dick’s was also one of the first businesses in the U.S. to stop selling assault rifles and high-capacity magazines, and barred the sale of guns to customers under age 21 following the February massacre at a high school in Parkland, Florida. The company had predicted this move could hurt sales but also would draw more shoppers to its stores.
Stack said Wednesday he was confident sales would turn around as those challenges lessen.
Here’s what the sporting goods retailer reported for the second quarter compared with what Wall Street analysts polled by Thomson Reuters expected:
- Adjusted earnings per share: $1.20 vs. $1.06 expected
- Revenue: $2.18 billion vs. $2.24 billion expected
- Same-store sales: down 4 percent vs. a decline of 0.6 percent expected
“Shocker” -> Dick’s Sporting Goods goes to war with the Second Amendment and they subsequently see sales numbers slide. https://t.co/vFRr61oQP4
— Dan Bongino (@dbongino) August 29, 2018
Here’s how some other people are responding to the unexpected drop in sales:
My suggestion, boycott dicks sporting goods this is America we have the second amendment for a good reason. We must show these people that the Second Amendment was given to us by our founding fathers who were extremely wise man!!!🇺🇸🇺🇸🇺🇸
— Linda Putnam (@LindaPutnam48) August 29, 2018
I quit shopping there since their war on the #2A began.
— @Gre8Scott (@Gre8Scott) August 29, 2018
Go against America America hits back, I’m loving it!
— Z Clark (@zayne_26) August 29, 2018
When they snub the outdoors men and shooting sports enthusiasts for politically correct virtue signaling . . What do you expect? I used to like them, now I avoid them completely.
— Frank A. (@flag400) August 29, 2018
Dick’s Doubly Dumb PoliticallyCorrect decision & then blaming that failure on UnderArmour’s strategically smart move into lower priced retailers is like crediting Obama’s Huge failure for PresTrump’s Huge economic successes in the short time since his inauguration!
— KAClark (@KAClark17454963) August 29, 2018
Note: The author of this article has included commentary that expresses an opinion and analysis of the facts.
How do individual shareholders feel about a handful of dem executives screwing their profits over the wrong idea that guns are the problem and therefore let’s not sell them. Dark ages mentality. Will always be crazy people regardless of who sells guns or not. Poor biz decision.
— Paul (@powerlinep) August 29, 2018