NEWS: Dick’s Admits Sales Affected by Gun Sale Restrictions
Sales at Dick’s Sporting Goods dropped in the past three months amid backlash against tighter gun-sale restrictions following a mass killing early this year at a Florida high school. Dick’s raised the minimum age to purchase a gun to 21 and stopped selling assault rifles last February after the Valentine’s Day shooting that left 17 students and staff dead.
Revenue dipped 4.5 percent to $1.86 billion amid challenges in Dick’s Sporting Goods hunting business during the quarter through Nov. 3. Sales at stores open at least 12 months – a key metric for the retail industry – fell 6.1 percent compared to the prior year.
While Chief Executive Officer Edward Stack previously said the firearms policy brought in new customers and sales were reported as flat in August, Dick’s has now warned that “negative reaction” could affect future results.
Despite lower sales, cost management and a higher margin helped Dick’s Sporting Goods boost profit 2.5 percent to $37 million. Stack is investing in new bricks-and-mortar stores, opening six in the quarter, and bolstering the firm’s e-commerce business, where sales climbed 16 percent.
“Our efforts have been focused on driving profitable sales and managing our business to deliver higher earnings,” Stack said in a statement.
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