NEWS: Dick’s Sporting Goods’ Gun Sales Policy Change Is Cause for Decline

“We delivered double digit growth in ecommerce, private brands, and athletic apparel excluding Under Armour, however, as expected, sales were impacted by the strategic decisions we made regarding the slow growth, low margin [hunting] and electronics businesses, which accounted for nearly half of our comp decline,” Dick’s Sporting Goods CEO Edward Stack said in a press release.

For the full year, Dick’s expects same-store sales to fall by 3 percent to 4 percent, compared to a 0.3 percent decline last year.

Dick’s executives had previously warned that the company’s hunting business would suffer as a result of a decision to stop selling assault rifles in stores. The company discontinued sales of rifles and enacted a 21-and-over age limit on all firearm sales following the deadly shooting at a Florida high school which left 17 dead this past February.

Company officials said Under Armour’s decision to enter a sales partnership with Kohl’s caused a 3 percent sales decline at its own stores. Stack said the company expects Under Armour to be “much less of a drag” on its business in fiscal 2019.

The Dick’s CEO added that the brand will look to expand offerings in its baseball category and among its private brands to offset losses in the hunting business.

Originally reported by www.foxbusiness.com

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