We’ll do our best to contain our glee, but we have German blood in our veins and schadenfreude is very a real thing. We apologize in advance.
All of that said, Dicks Sporting Goods today reported a larger-than-expected drop in same store sales and their stock has taken a dive as a result. What’s more, analysts are blaming their post-Parkland Bloomberg-approved gun sales polices for a big part of the drop.
As reuters.com reports . . .
Shares in the company fell as much as 10 percent after it posted a 1.9 percent drop in same-store sales, bigger than analysts’ average estimate of a 0.62 percent dip.
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.
The company had predicted that its hunting guns business would be pressurized by the change in policy but said the move should also attract more people to its stores.
Dick’s said on Wednesday it expected annual same-store sales to decline by 3 percent to 4 percent, compared with a 0.3 percent decline in 2017.
Dick’s and their boosters in the media touted the fact that the chain’s sales were up initially following the announcement of their new anti-gun polices and CEO Edward Stack’s cash support for gun control lobbyists in Washington. Stack and his new “socially responsible” management style were hailed by civilian disarmament organizations. Everything was going to be just fine.
But now the worm has turned and the full-on effects of the retail chain forsaking a significant portion of its customer base seem to be having the result many predicted.
Dick’s is also blaming the downturn in part on a nosedive in sales of Under Armour gear, a brand Dick’s had counted on to make up for a big chunk of their lost gun and ammo business.
Much like Dick’s, though, Under Armour hasn’t exactly endeared itself to the hunting gear-buying public in recent years.
Chief Executive Officer Edward Stack said Under Armour sales fell as a result of the sports apparel maker’s decision to expand distribution to a broader range of stores.
Shares in Under Armour Inc (UAA.N), for whom Dick’s 700 stores have played a major role in efforts to challenge Adidas (ADSGn.DE) and Nike (NKE.N), fell 6 percent to $19.66.
Parkland happened in February and hunting season is now just weeks away. These results could be the first tangible effects of hunters and other gun buyers deciding to take their business to other, more gun-friendly big box retailers such as Cabela’s, Bass Pro, and Academy.
It appears many of Dick’s customers have decided there’s no reason to give their hard-earned money to a retailer that has openly and actively worked to restrict their right to keep and bear arms.